[Coin World] Many fintech companies, such as Tether, Stripe, and more recently Circle, have launched their own Layer-1 (L1) Blockchain. In this wave, a question has arisen: why are these companies launching their own L1 instead of opting for Layer-2 (L2) solutions? Has the L2 Blockchain become irrelevant?
L1 adopts trends
Recently, the issuer of the USDC stablecoin, Circle, unexpectedly announced Arc, an open-source L1 Blockchain. Prior to this, Tether and Stripe had both launched their own L1s. This move has led analysts to question the infrastructure development strategy of traditional financial institutions entering the cryptocurrency space.
Although L2 networks have advantages and inherit Ethereum L1