Thread by @ChainLinkGod

@spencernoon The demand/supply ratio of Ethereum's blockspace is higher than any other

Demand is high because of the high level of security from decentralization and network effects

Supply is low because of the social contract of decentralization, achieved by limiting hardware requirements

@spencernoon Other L1 blockchains have lower fees because their demand/supply ratio is lower than Ethereum's

Fee are low because less there's less demand for blockspace (compared to Ethereum) and/or there is a greater amount of blockspace (thus higher hardware requirements)

@spencernoon Monolithic blockchains generally have two paths as adoption rises

Increase blockspace to keep fees low (raise hardware requirements and therefore centralize the network)

Keep blockspace static/low to ensure decentralization, but at the trade off of higher fees

@spencernoon Modular blockchains is a design model that increases the efficiency of using an L1's exisiting blockspace (reduce blockspace demand per tx)

Only succinct proofs and compressed data need to be put on the L1, execution happens off-chain, near equivalent level of security

@spencernoon Data sharding of an L1 increases blockspace supply, without centralizing the network, providing L2 rollups more space to put compressed TX data

There are many naunces but that's the gist
vitalik.ca/general/2021/0…

newsletter.banklesshq.com/p/ultra-scalab…

polynya.medium.com/why-rollups-da…