X @Nick Szabo

Layer 2 Solutions & Decentralization - Layer 2 solutions were initially conceived as centralized banks issuing Chaumian cash [1] - Computer science imposes limitations on Layer 1 capabilities, although some protocols claim improvements over Bitcoin [1] - More decentralized/trust-minimized Layer 2s exist now compared to initial visions [1] Trade-offs in Blockchain Design - Bitcoin sacrifices some privacy to enhance decentralization [1] - Turing-complete smart contracts (e.g., Ethereum) compromise decentralization for utility [1] - The industry continues to seek improved trade-offs between decentralization, privacy, and functionality [1]