L1 Blockchain Launches by Stripe and Circle Stir Industry Backlash

Key Points

1. Stripe's Tempo is a high-performance, payments-focused L1 blockchain compatible with Ethereum, developed in partnership with Paradigm, aiming to facilitate faster and cheaper cross-border payments.

2. Circle introduced Arc, an open L1 blockchain designed for stablecoin payments, foreign exchange, and capital markets applications, using USDC as its native gas token with a public testnet planned for 2025.

3. The crypto community is divided, with some questioning whether these new L1 chains bring genuine innovation or just add to market fragmentation and liquidity issues.

4. Critics argue that these L1s may lack interoperability, DeFi capabilities, and economic security, with some stating that the market does not need more L1s, especially for stablecoins.

5. The debate also touches on regulatory hurdles and the dominance of Layer 2 (L2) solutions, with skepticism about the adoption and success of these new blockchains in a fragmented market.