What you need to know
Codex is it enough to revive the interest in Ethereum L2s for optimally running stablecoin chain? This issue is still a contentious one.
Ethereum [ETH] Vitalik buterin has publicly supported Codex. It is a L2 stablecoin that focuses on payments first. Buterin added that the segment is a ‘large-scale value’ and Codex’s positioning is impressive.
“Excited to see Codex joining the arena as an L2 and thinking explicitly about synergy between itself and Ethereum L1 from day one.”
Source:
This move is noteworthy in light of Stripe Tempo announcementThe L1 chain is similar.
Stripe claimed that current networks and L2s can’t cope with the growing traction of its stablecoin, igniting an enormous debate on Crypto Twitter.
Ethereum L2s have been the target of all this negative criticism. Will Ethereum regain the narrative through Codex? It depends who you talk to.
It’s too early to choose winners
Most experts agree that the wars over stablecoins are going to get more messy in the medium term. According to some, the short-term may not be the right time to choose a stablecoin winner.
Tom Lee is the CIO of Fundstrat. Christian Catalini (founder of Lightspark and co-founder the now defunct Libra crypto project, which was incubated by Facebook) also made a similar post.
Catalini combines his knowledge of how regulators at the time killed Tempo, which was a system similar to Libra. said,
“If corporate chains like Tempo and Arc succeed, it will mean the crypto experiment was not a revolution, but a failed coup. The backend technology would be different, yes, but the market structure would be eerily familiar.”
Catalini also said the central authority for the project would be an area that government could leverage.
Tempo’s early phases will have permissioned networks (private), before it transitions to a network with no permission (public). As a result, the risk described above isn’t wildly outlandish.
Mert Mumtaz founded Helius Labs. transition Tempo’s life will be more difficult.
“They say they’ll go permissionless later, but that’s much harder. Open it up, and you face what truly comes with permissionless systems.”
Codex benefits from a decentralized Ethereum. The Co-founder claims that this is the case. Haonan LiIt was far too soon for anyone to presume Stripe’s moat.
“We’re still at the buzzword phase for the category.”
Another camp, however, argues Stripe, Google Tether and other corporate chains are the ones that have the distribution business that is hard to duplicate by L2s.
Rob Hadick, of VC Dragonfly, dismissed the camp. citing Historical trends
“History of payments innovation tells you it’s more of a product game than just a distribution game.”
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: ambcrypto.com
