From Nasdaq:

Following ETH Denver, the rollup ecosystem is abuzz with new ideas to address state fragmentation. L2 total value locked is up over 230% in the past year. Modular scaling designs are the next evolution, but challenges remain. State fragmentation compromises network effects, worsens user experience, and leads to increased interoperability complexity.

Compromising on global state network effects is a major reason why modular blockchains fail. Lack of unified liquidity and user distribution across chains present barriers for app founders. The introduction of personalized chains tailored to niche interests raises questions about the value of customization. Bridge hacks totaling $2.8 billion highlight the need for solutions to L2 state fragmentation.

Interoperability complexity and diminishing developer and user experience are rising concerns in the growing L2 ecosystem. Developers are faced with convoluted network abstractions, while users juggle complexities such as asset bridging and gas token management. To prevent the downfall of Ethereum’s application dominance, L2s must address state fragmentation and congestion fees.

In summary, the Ethereum ecosystem faces challenges related to state fragmentation, interoperability complexity, and diminishing user experience. Solutions must be developed to address these issues and ensure the sustainability and scalability of the L2 ecosystem going forward.



Read more at Nasdaq: Where Did We Go Wrong With Ethereum Scaling?