Crypto CEO Says That Competing With Ethereum Is A Bad Idea

One of the biggest trends in crypto over the past couple years has been the growth of Ethereum Layer 2 blockchains such as Arbitrum and Optimism. Rather than trying to compete with Ethereum head on like bespoke blockchains such as Solana, Cardano, Avalanche and the like, Layer 2 chains aim to be complementary with Ethereum.

When it comes to Arbitrum and Layer 2s versus the alternative Layer 1s, the big differentiator is Layer 2s are part of Ethereum. They’re not competitive with Ethereum. The Layer 1s are generally competitive. I have no issue with technical experimentation. And different Layer 1s make different trade-offs when it comes to some of these core properties like security, decentralization and scalability, and how they try to achieve that.Let's go right into Layer 2s and what they provide.

Forbes: You said there only has to be one node on Arbitrum that needs to be honest versus however many that could theoretically be dishonest. Can you explain a little bit more of how that works?In a protocol like Ethereum the nodes are always actively participating. They're all trying to make blocks and you can see this running on the network. At Arbitrum the way it works is one node goes ahead and posts something.

Forbes: Now that the Ethereum merge is completed, the focus for developers of the blockchain are turning more towards scalability. How do you see that impacting Arbitrum?At Offchain Labs we are on the front lines of this as well because we have another project called prism. The software came to us about a year ago when we acquired a team called Prysmatic Labs. Our team is very integrated in Layer 1 development.

Forbes: What do you think is next on the roadmap for Arbitrum? What would you like to see get implemented?I mentioned earlier that the challenge protocol today currently has an allow list in which about a dozen industry players are involved. There’s a brand-new challenge protocol that we at Offchain Labs have researched and developed that has been audited and will hopefully be published online later to be available for any chain.

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