Competition between L2 and Solana: Finding New Breakthroughs

The biggest problem with some L2 networks is their excessive imitation of Ethereum L1's DeFi model, leading to path dependence. However, L2 has unique characteristics and should forge new paths suitable for high-performance application needs. What the market truly needs is not a shadow of Ethereum, but a brand new direction for L2 development.

These new directions should focus on high-frequency applications. Just like Solana's efforts in the DePIN field, repeating old paths is unlikely to bring explosive growth. The insights of the Solana ecosystem in this regard are indeed commendable. Ultimately, it is these new attempts that bring new narratives, which in turn ignite the market.

For L2 networks, the top priority to compete with Solana is not to focus all efforts on replicating Ethereum L1 DeFi. While this is important, it is not the key to breaking the deadlock.

What really matters is to create a new narrative. Breakthroughs should be sought in areas such as Web3 gaming, AI, and DePIN. It is also hoped that developers will not reinvent the wheel, but rather strive to open up new battlegrounds. Even so, vigorously developing DePIN is also a viable path.

In addition, L2 networks also need to allocate valuable economic support (tokens) towards projects and developers in new tracks. The L2 ecosystem has a latecomer advantage in token economics and can completely design better ecological incentive programs than previous public chains.

The breakthrough of Solana is a great demonstration for L2 networks and should be learned from rather than underestimated.

If several blockbuster applications can be launched in the fields of Web3 gaming, AI, or DePIN on the L2 network after the Cancun upgrade in the first half of next year, the situation may change significantly.

The real competition between L2 networks and Solana will officially start in the second half of next year, and we can basically see clues about who will prevail in the next two years. This is a long cycle, and there is currently no conclusion.

The Ethereum ecosystem should also thank the innovative breakthroughs on Bitcoin and Solana. Without this catfish effect, the Ethereum network might become too complacent. The stimulation from the Bitcoin and Solana ecosystems is enough to attract the attention of the Ethereum community. The most important thing is not to underestimate or oppose, but to learn from the breakthroughs of other ecosystems. Only in this way can we continue to move forward. Ethereum has faced many doubts in history, and I believe that the resilience of Ethereum ecosystem developers and the community is sufficient to meet the challenges.