A well-known fintech company's crypto lead recently discussed an interesting technical choice—they decided to build their Ethereum Layer-2 network based on Arbitrum instead of creating an independent L1. The logic behind this decision is quite straightforward: rather than spending effort on building their own underlying layer, they prefer to leverage Ethereum's security and decentralization attributes directly. After all, Ethereum's network security has been thoroughly validated after years of operation, and this trust is something money can't buy.
Another practical consideration is liquidity. The EVM ecosystem is already quite mature, and the number of applications and users cannot be quickly accumulated by a new L1. Based on this thinking, the company can focus its efforts on its core competencies—such as refining differentiated products like tokenized stocks—rather than engaging in unnecessary competition at the underlying layer. In other words, this is a pragmatic approach found in the Layer-2 space that ensures technical security while quickly gaining liquidity support.
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liquidation_watcher
· 19h ago
No more building own L1, a pretty smart choice
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Another smart person, focusing on product differentiation is the right way
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Honestly, it still depends on Ethereum's moat. Who would trust self-minted coins?
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This idea makes sense. Instead of competing with a bunch of new L1s, it's better to make a name on Arb
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Liquidity is always the top priority, they've really thought this through
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Using others' security to refine your own stuff—that's the logic of a real operator
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Is tokenizing stocks reliable? Compared to that, I want to know more about this
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Agreed, the EVM ecosystem is indeed the most lucrative place right now
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PretendingToReadDocs
· 19h ago
Smart move, not following the trend of building your own L1 chain.
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TokenomicsDetective
· 19h ago
Smart move, no need to reinvent the wheel, just leverage Ethereum's reputation and ecosystem.
Once you understand it, the L1 path is now a trap.
The liquidity in the Arb ecosystem is indeed deep, choosing this way is pragmatic.
It's either a shell company or riding on the coattails, but to be fair, it's a smart move.
While refining core products is important, the underlying security must also be kept tight.
The EVM ecosystem is already established, why insist on starting from scratch? It saves time and effort and is more reliable.
It seems that the fintech folks have finally figured it out—focusing on what they excel at is the key.
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GhostInTheChain
· 19h ago
Choosing arb instead of building a new L1 is basically the smart person's choice. Why reinvent the wheel?
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Another player who recognizes reality. Instead of burning money and competing at the bottom layer, it's better to focus on the product itself.
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This logic makes sense; the "borrow a chicken to lay eggs" strategy is always popular in crypto.
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The liquidity in the EVM ecosystem is indeed unbeatable. Even a new L1 would need to compete for several years.
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Finally, someone is not blindly going all-in on building a new L1. This is the practical way to live.
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OldLeekNewSickle
· 19h ago
Basically, the project teams are smart enough not to want to spend effort creating their own complex L1. They leverage Arbitrum's framework to package liquidity and, under the guise of a differentiated product, make a quick profit. Even old foxes can see through this trick.
A well-known fintech company's crypto lead recently discussed an interesting technical choice—they decided to build their Ethereum Layer-2 network based on Arbitrum instead of creating an independent L1. The logic behind this decision is quite straightforward: rather than spending effort on building their own underlying layer, they prefer to leverage Ethereum's security and decentralization attributes directly. After all, Ethereum's network security has been thoroughly validated after years of operation, and this trust is something money can't buy.
Another practical consideration is liquidity. The EVM ecosystem is already quite mature, and the number of applications and users cannot be quickly accumulated by a new L1. Based on this thinking, the company can focus its efforts on its core competencies—such as refining differentiated products like tokenized stocks—rather than engaging in unnecessary competition at the underlying layer. In other words, this is a pragmatic approach found in the Layer-2 space that ensures technical security while quickly gaining liquidity support.