Layer 2 blockchains are all the rage in the crypto ecosystem, reaching over $13 billion in global market capitalization. However, Paul Rajchgod believes that they are all based on a lie.
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Rajchgod, Managing Director of Ayre Ventures, was at the London Blockchain Conference, where he moderated a panel covering investing in Web3, using blockchain in various businesses and layer 2 blockchains.
“My thesis is that the entire premise of Layer 2 is based on a lie, and that lie is that Layer 1 was not scalable. Layer 1 means using the blockchain itself and not building outside of the blockchain,” Rajchgod told CoinGeek Backstage host Becky Liggero on the sidelines of the event.
Layer 2s are off-chain networks built on top of blockchain networks to improve qualities such as scalability, speed or cost reduction. They arise from the inability of core networks to scale to meet changing user needs, with lack of scale being the most common.
“Other blockchains aren’t scalable enough, and I think that’s why they had to say, ‘Well, we’re going to do a layer 2 thing,'” he said.
BSV scales without limits to meet the needs of businesses, making it the ideal blockchain network for applications targeting millions of users, from games and social media platforms to government and enterprise services. With the Teranode upgrade later this year, BSV will process more than a million transactions per second, making it the most scalable decentralized network in the world and eclipsing the throughput of most of its centralized competitors.
At the London Blockchain Conference, many of Ayre Ventures’ portfolio companies took the stage to provide updates on their products and services. According to Rajchgod, most have onboarded paying clients that they help grow on Bitcoin, including MintBlue, Gate2Chain and Buzzmint.
One of the main goals of the conference is to connect blockchain leaders and enthusiasts with decision-makers in the business and government sectors. Rajchgod revealed that the event fulfilled this mandate, with Ayre Ventures involved in dozens of sideline meetings focused on strong partnerships that could drive blockchain adoption.
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