Layer-3 Networks on Trial!

Polygon's CEO suggested that L3 networks might not be as crucial for Ethereum's scalability as many believe.

Author

Danielle du Toit
April 01, 2024

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Here's what we've got for you today:

  • Polygon CEO Questions Layer-3 Networks’ Value to Ethereum

  • Tron Argues SEC ‘Not a Worldwide Regulator’ and Lawsuit Goes ‘Too Far’

  • Telegram Embraces Crypto for In-App Ad Purchases

  • Tornado Cash Co-Founder Seeks Dismissal of US Crypto-Laundering Charges

Over the weekend Marc Boiron started an interesting conversation by questioning the need and usefulness of layer-3 networks for Ethereum's scalability.

  • Marc Boiron sparked a debate by suggesting that layer-3 (L3) networks, which are intended to enhance the capabilities of layer-2 (L2) scaling solutions, might not be as crucial for Ethereum's scalability as many believe.

  • Boiron argues that L3 technologies could potentially detract value from Ethereum, challenging the core blockchain's value proposition.

  • He is skeptical about the assumption that L3 solutions directly contribute to Ethereum's inherent value and raises concerns about Ethereum's ability to capture value if L3 networks start to favor a single L2 solution.

Tron asked a New York federal court to dismiss a United States Securities and Exchange Commission (SEC) lawsuit against it.

  • The Tron Foundation filed a dismissal motion in a New York federal court, arguing that the SEC's attempt to enforce U.S. security laws on predominantly foreign activities is an overreach, as the SEC is not a global regulator.

  • The SEC sued the Tron Foundation, along with the BitTorrent Foundation and Rainberry Inc., alleging their sales of TRX and BTT tokens constituted unregistered securities offerings.

  • Tron holds firm that the tokens were sold entirely outside the U.S., and claims that steps were taken to exclude the U.S. market.

Telegram announced Sunday that in-app advertisements can be purchased using Toncoin.

  • The update is part of Telegram’s user monetization strategy. Under this, the app will begin allocating 50% of ad revenue generated within public channels directly to their owners.

  • The platform chose the TON blockchain for this initiative because of its minimal transaction fees, fast processing speeds, and high transaction capacity per second.

  • In fact, in October of 2023, the TON blockchain was ranked by blockchain security firm Certik as the fastest network globally, outperforming other networks and payment systems like Solana, Polygon, Visa, and Mastercard.

Roman Storm, the co-founder of the crypto mixer Tornado Cash, is seeking to have all charges against him dismissed.

  • Roman Storm's legal team argued that Storm could not have conspired to launder funds, stating that Tornado Cash became immutable and publicly available before any misuse by sanctioned hacker groups.

  • They also argued that Storm had very limited ability to prevent any sanctioned entities from using Tornado Cash.

  • Storm pleaded not guilty to all charges filed against him in September of 2023 and was released on a $2 million bond shortly after his arrest.

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