Blockchain Titans OP Labs, Polygon, and Matter Labs Vie for Celo Contracts Amid Crypto Winter Layoffs
The impact of the crypto winter on blockchain technology cannot be ignored. As layoffs hit key firms and blockchain projects compete for new mandates, the industry is facing challenges and consolidation. This week, the focus is on big Ethereum layer-2 developers vying for the opportunity to provide technology for the Celo blockchain’s new network.
The migration of Celo from an independent “layer-1” status to a layer-2 network on Ethereum has attracted a burst of competition among veteran layer-2 teams. Initially, the migration was supposed to rely on Optimism’s OP Stack software kit, but Polygon and Matter Labs have now entered the race as well. This competition highlights the consolidation trend in the industry as networks scramble for new business.
Meanwhile, OP Labs, a crypto developer, recently addressed a crucial deficiency in its software, which attracted the likes of Coinbase. The lack of “fault proofs” in its networks was a concern, but OP Labs has now launched fault proofs on a test network, addressing the issue and keeping critics at bay.
The crypto industry as a whole is experiencing a slowdown, with transaction volumes dropping significantly. Layoffs and closures are becoming more common, as companies struggle to sustain themselves in the current market.
In other news, there is internal strife in the Bitcoin SV (BSV) blockchain community. The former CEO of nChain, a BSV-focused company, posted on social media, expressing doubt about Dr. Craig Wright’s claim to be Satoshi Nakamoto, the creator of Bitcoin. This led to a heated exchange with Calvin Ayre, a patron of the BSV ecosystem.
Vitalik Buterin, co-founder of Ethereum, is reconsidering his stance on layer-2 networks. Previously, he advocated for a minimal-enshrinement philosophy, keeping the main blockchain simple. However, he now believes that certain features should be enshrined in the protocol.
Overall, the industry is facing challenges and uncertainties, as the impact of the crypto winter becomes more apparent. However, there are signs of progress and innovation, with developers launching new products and protocols to enhance blockchain technology. The future of finance may end up being a hybrid of crypto and traditional finance, rather than a complete disruption or winner-takes-all scenario.
