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The blockchain trilemma — the quest for scalability, security, and decentralization — continues to be the central challenge for the entire industry. While Layer-1 blockchains like Ethereum offer robust security and decentralization, they grapple with transaction throughput and high fees, hindering mass adoption. Enter Layer-2 (L2) scaling solutions, designed to tackle these limitations by processing transactions off the main chain. The narrative surrounding a singular "one protocol" that VCs are exclusively backing for L2 scaling is a bit of a simplification. In reality, venture capital is flowing into a diverse ecosystem of L2 technologies, recognizing that innovation is happening across multiple fronts. This blog post dives into the dynamic world of L2 scaling, exploring the technologies VCs are quietly backing and what this means for the future of blockchain.
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