Layer-2 Networks: The Rising Star in Crypto Space - An Insight by Fuse CEO Mark Smargon
Summary:
This article features an interview with Mark Smargon, CEO of Fuse, on Hashing It Out. Smargon discusses the rising popularity of layer-2 networks in the crypto world, noting their significant role in solving scalability issues of major layer-1 blockchains, and making transactions affordable. He also addresses criticism of user base fragmentation and focuses on more pressing issues of standardizing bridge systems. Smargon spotlights the growing interest in zero-knowledge technology, touting it as a game-changer for privacy and regulatory compliance in businesses. The article also features links to the full interview and other informative podcasts on Cointelegraph's page.
In the countdown to 2024, Hashing It Out is turning the spotlight on expected hot topics in the crypto world for the upcoming year. In its 41st broadcast, Mark Smargon, the head of Fuse — a public blockchain hub dedicated to Web3 payments — unpacks the rise of layer-2 networks and their evolution into prime focus areas in the world of cryptos. He stresses on the trajectory of layer-2's growth, their contribution in driving adoption, the uptick in their general use, and provides projections for future trends like increased interest in zero-knowledge (ZK) based solutions.
Smargon unfolds the history of the layer-2 concept, tracking its origins back to solving scalability problems plaguing the major layer-1 blockchains. He points out that layer-2 networks not only fix scalability issues that can't be overcome by simply expanding the network's capacity, but their affordability and ease of transactions have also made them hard for users and creators to overlook.
Regarding the criticism that layer-2 networks lead to a divided user base and liquidity within their ecosystem, Smargon asserts that more important issues are the standardizing of bridge systems and the prevention of cyberattacks on these bridges. He contends that if advancements in speed and security of bridge systems can be achieved, the splitting of user bases and liquidity can then be managed. As per Smargon’s view, at present, the process of bridging often proves to be a hurdle to adoption due to its complexity.
Further, Smargon notes the increasing drift of more layer-2 networks towards adopting ZK technology. He hails this as the ultimate goal for numerous networks, as it enables them to verify claims without needing all the data, thereby reducing storage expenditure and elevating privacy levels. This led Fuse to declare its development of a ZK-based layer-2 solution, powered by Polygon CDK, specifically designed for payments. Smargon expects that the introduction of ZK technology will facilitate greater privacy for businesses, while simultaneously maintaining worldwide regulatory standards.
He says, "Undertaking off-chain transactions and enhancing privacy are crucial if you're aiming to outperform a system like Visa using zero-knowledge proofs. Blockchain technology not only becomes feasible or equivalent to Visa, it actually surpasses it in all aspects.”
The full conversation with Smargon on Hashing it Out can be tuned in on Spotify, Apple Podcasts, or TuneIn. Also, one can explore more informative podcasts on the Cointelegraph's Podcasts page.
All information in this article is only for general understanding and should not be considered as legal or investment advice. Opinions expressed are solely from the author and do not essentially represent the views or opinions of Cointelegraph.
Published At
12/28/2023 4:20:00 PM
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