Lima Capital – May Newsletter 2022
2022 is shaping up to be another "what the [...]
2022 is shaping up to be another "what the [...]
Reducing complex topics to simple and easy to understand [...]
This weekend we explore real use cases of the emerging decentralised finance world. In the same way our current financial system possesses core financial primitives such as the ability to pay, exchange, lend, borrow, and hedge, so does the decentralised world.
Today we will explore layer 2 scaling solutions. With the high cost of Ethereum gas fees at the moment, we decided it was an appropriate topic to delve into. But Why Do We Need Layer 2's In The First Place? All blockchains have their limitations. They make tradeoffs to provide a specific service to their end-users. Vitalik Buterin, the creator of Ethereum, has dubbed it the blockchain trilemma
One of the most common questions we get when talking to people about digital assets usually concerns the difference between Bitcoin and Ethereum. We believe this confusion stems from the idea that both of these assets compete with each other as money.
Our banking and financial networks of today are simply communication networks for settling financial transactions, they guarantee that transactions will be processed, executed, and settled. Banks are responsible for interfacing with these networks on behalf of their clients — sending the right messages and responding appropriately to messages received. The internet brought us, as users of banks, that much closer to their messaging network, allowing for online banking and fast mobile payments all whilst hundreds of bank branches closed across the globe.