Frictionless flows are Ethereum's path to economic dominance
Barna Kiss, CEO of Malda, argues that Ethereum's future relies on enhancing frictionless capital movement among its Layer-2 solutions rather than taxing them, which could harm the ecosystem by fragmenting liquidity and driving users to centralized platforms. The piece emphasizes that traditional finance shows the link between liquidity and growth, demonstrated by the EU’s single market in relation to Brexit. In Ethereum, current rollups create delays and access issues, leading developers to choose between focusing on one rollup or spreading resources thin across multiple, both detrimental to long-term development. Kiss advocates for protocols that can abstract capital movement, promoting seamless inter-rollup liquidity. The article highlights that competitive advantages in DeFi will come from protocols that effectively access liquidity across fragmented platforms, ensuring a user-friendly experience without manual fund transfers. Upcoming technologies, particularly zk-Rollups, could address these concerns but must be paired with innovative applications to reduce friction. Ultimately, the future of Ethereum should focus on enabling a unified economic engine rather than imposing tariffs on rollups.
Source 🔗