Crypto news

07.07.2026
09:26

Injective Head Warns: L1 Blockchains Sacrifice Decentralization for Speed

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With the growth of mass adoption of Layer 1 (L1) blockchain technology, developers are increasingly facing a dilemma: maintain decentralization or sacrifice it for higher speed and efficiency. This opinion was expressed by Eric Chen, CEO of the Injective platform.

According to him, users demand higher throughput, and this pressure forces many L1 networks to make compromises. Centralization indeed simplifies scaling — it allows for faster transaction processing and reduced latency. However, as Chen emphasizes, this approach creates a single point of failure, contradicting the very philosophy of blockchain.

Key problem: if a network becomes too centralized, it loses resistance to censorship and attacks. One compromised node or group of validators can jeopardize the entire ecosystem. This is especially dangerous for DeFi protocols and applications where security and trust are paramount.

Solution: dedicated zones and L2

As an alternative, Chen proposes finding a balance through the use of dedicated zones (appchains) and Layer 2 (L2) solutions. These technologies allow offloading the main network while maintaining a high degree of decentralization at the base layer. Dedicated zones, such as sidechains or sovereign rollups, can handle specific tasks without compromising overall security.

In my view, the trend toward L1 centralization is a temporary phenomenon driven by the race for users. However, the long-term sustainability of the crypto industry depends precisely on decentralization. L2 solutions and appchains are not just a stopgap but a strategic development vector that will preserve the balance between scalability and trust.