Galaxy Research: The vast majority of Bitcoin Layer 2 networks will not survive
Galaxy Research said in a report that the vast majority of Bitcoin rollups will be unsustainable. Due to transaction fees, Bitcoin Rollups require millions of dollars per year to maintain. Galaxy wrote: "Each individual data publishing transaction can take up to 400KB (0.4MB) of block space, effectively taking up 10% of the entire block." Since there will be multiple Rollups, and data is expected to be published every 6 to 8 blocks, Rollups may quickly push base layer fees to new highs and make small transactions too expensive. Given the competition for block space, only Rollups that can generate the most fee income and pay block fees can maintain operations.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Perplexity AI to Testify in Landmark Google Antitrust Case
Perplexity AI, a rising competitor in the search industry, is set to play a key role as a witness in the ongoing United States Department of Justice (DOJ) antitrust trial against Google.
Manychat Secures $140 Million to Advance AI-Powered Business Messaging
Manychat, a leading business messaging platform, has raised $140 million in a new funding round to accelerate its artificial intelligence (AI) capabilities and expand its global business communications market reach.
El Salvador Launches National AI Lab in Partnership with NVIDIA to Drive Technological Sovereignty
El Salvador is making significant advancements in artificial intelligence (AI) by launching its first national AI Lab in partnership with NVIDIA. Recently announced by the Bitcoin Office, this initiative aims to develop sovereign AI capabilities to enhance key sectors like healthcare, education, and the economy.
BlackRock Invests $84 Million in Bitcoin
Trending news
MoreCrypto prices
More
