Why Your Company Should Think Twice Before Creating Its Own Layer 2 Solution
According to EY’s Global Blockchain Leader Paul Brody, only companies that can aggregate significant transaction volume into the network, and whose customers can't make their own direct connection to Ethereum, would benefit from creating their own layer 2.
Companies in the blockchain space often consider creating their own Layer 2 solutions to enhance transaction throughput and scalability. However, EY’s Global Blockchain Leader Paul Brody warns that not every company actually needs its own Layer 2 network.
Brody suggests that unless a company can consolidate substantial transaction volume and its customers lack the ability to directly connect to Ethereum, the benefits of developing an independent Layer 2 solution may not outweigh the costs.
By carefully evaluating the necessity and potential advantages, companies can make informed decisions about whether investing in a personalized Layer 2 network is truly beneficial for their operations.