Mattis CEO on strategic moves in Heat Layer 2 combat

Layer 2 (L2) solutions have seen significant activity recently, marked by notable capital inflows and developments. Tom Ngo, visionary CEO of Metis, discusses how his platform and others are strategically positioning to ride this wave, focusing on optimization and user-centric growth.

Recovering from bear market challenges

The bear market has been unforgiving for many, but for Tom Ngo and Metis, it's an opportunity for awareness and growth. I believe there are a few things that need to be more careful during this challenging time, but projects must continue to build.

“In any market, you have to strive to keep growing. In this place, there's no stopping or stopping. The music has to go on. We have to keep building. We have to refine our team. During bear markets, we're a little more careful to understand costs and where we're at to make sure our team is efficient, but still We need the ability to continue building, so we see no difference. Our goals and challenges are still the same as L2, to expand the Ethereum infrastructure and make it more accessible to a wider audience.

The industry is now witnessing significant inflows of retail and institutional capital, fueled by interest from key players in cryptocurrency and a regulatory climate supported by blockchain developers. This shift has led to an improved level of confidence, a resurgence of investment, and the need for more scalable and cost-effective transactions has drawn attention to Layer 2 solutions. To recap, TVL in Ethereum L2 networks has surpassed $30 billion, a significant increase from the figures at the beginning of the year. This growth reflects the increasing demand for Layer 2 applications and their potential to alleviate some of Ethereum's scalability challenges.

“Now the technology and supporting software and dApps are highlighting what L2 is and is designed to be.” Layer 2s is designed to scale Ethereum, manage the bulk of the transaction, and wrap it into Ethereum's security layer. Year over year, we have seen a threefold increase in TVL for all L2s compared to last year. And it doesn't stop. This is where the market is showing demand and people are using L2 understanding more options that come with specific use cases, and the user interface is much smoother and people have more confidence in L2 and see their use cases. Why they were prepared and why they were created.

Evolution of layer 2 solutions

Tom last year was a sign of significant technological advancements and changes in user engagement for L2 solutions. The trend is clear, he says: Layer 2 is becoming more specialized, each adapting its approach to blockchain's broader capabilities.

There are many solutions being developed – L2 as a service, order of service. This is something we are exploring and looking forward to working with Eigen Layer on the dual staking side to improve security for any network. The barrier to entry is much lower than it was a year ago with a new device and it's much easier to start networking. I think sustainability and having an efficient economic design is the key. And finally, the ones that will last and survive are the ones that have the best plan, the best business plan, the best team who have really worked out the projects and the sector they really want to focus on.

But major challenges remain. One of the core issues of Layer 2 solutions is the ability to centralize. Many L2 blockchains rely on a single entity that operates a single entity responsible for processing transactions, which can lead to centralization risks such as outage risks and Maximum Expenditure Value (MEV) measures.

Security is another area of ​​concern. While Layer 2 solutions aim to preserve the security guarantees of the underlying Ethereum network, adding another layer introduces complexity and potential vulnerabilities, especially when Layer 2 protocols interface with the base layer or rely on off-chain data storage. These vulnerabilities can compromise transaction integrity. Moreover, some Layer 2 solutions inadvertently introduce compromise points, making them targets for attacks.

Here we look at the point of security and decentralization in Metis. We have recently launched our decentralized serial service. One of the key issues with all L2s is still the reliance on a single series, which is subject to censoring and the risk of censoring, as well as the risk of survival. Having a decentralized sequencer pool can help reduce this from a liveability and security perspective. What makes it special is that we partnered with Chainlink CCIP to create an ad. The only cross-chain protocol with level five security. And in general we see that it is a very strong point because of this place, the bridge risk is one of the highest risk where we see a lot of hacking and vulnerability. Having said that, we will also see how they build decentralized series from the meta side as the next evolution of L2.”

Metis: It stands out in the competitive landscape.

Metis carved out its image by focusing on DeFi, but is now exploring new territories that promise to bring more users to the archives. The project adopted Daffy Kingdom as one of their game boards.

“Everyone loves games, so we see gaming as an environment that helps users get there.” But currently, DeFi is one of its strongest points. What sets METIS apart is that we have a METIS token for security, transactions and governance. Having a native token allows industry and market participants to help secure the network. This opens up an area of ​​liquid capture and liquid restoration for the network, which makes us unique in the overall mature ecosystem economic design.

Tom observed the Métis approach of supporting builders by hand. It recently launched an ecosystem development fund to help projects explore the L2 ecosystem and improve their technology.

« We have deployed and supported a few projects – for example, DeFi Kingdom, Wagmi, Hercules exchange. Built using the official source code from Camelot.Exchange, Hercules is not only highly successful and sustainable, but also features an efficient, economical design that supports itself as a foundational ecosystem of projects. We also have LeadTech, which is an innovative social media app. Our EDF fund is still open to any builders or projects – the program is intended to support the ecosystem for the next 10 years, so we do it in the long term».

However, Métis' plans are not limited to developers. The team recognizes that the complexity of the technology is one of the barriers to the system and has targeted blockchain as a financial infrastructure in education and emerging markets.

“We've put a lot of focus on education. There are a lot of untapped new markets – we see this as a target area for education and blockchain offers. So for our market-to-market strategy, we also have different campaigns that many networks do just to generate engagement. But the payment side and as Versal We're talking to partners who are very engaged in payments, and those are the groups we're looking to work with to open up new markets for our network.

Regulatory landscape and legal considerations

A conversation with Tom wouldn't be complete without touching on the regulatory challenges and opportunities surrounding the blockchain space. The CEO is optimistic about the growing relationship between blockchain enterprises and regulatory bodies. He believes that with a collaborative approach, the industry can successfully navigate these waters, continuing growth and innovation.

“I think it should be a collaborative effort. A lot of approval, more acceptance from all the traditional finance and governance bodies will help ensure the legitimacy of the space and adoption. Our market is still small compared to the traditional market and once it opens up, it will be a gradual step from what we see now – a lot of migration and Many users. The projects must be up-to-date and make the best decisions about how to navigate this space. The language we use in our industry often treads a fine line, so it's important to actively navigate these gray areas We aim to maintain this balance while supporting.

As the industry expands and adoption increases, it attracts talent from traditional sectors. This new wave of professionals, including finance and business, will make a significant contribution to the projects and the industry as a whole. The growth and maturity of the space is not only complementary, but is creating opportunities comparable to traditional jobs, marking a shift in the professional landscape as more professionals enter blockchain.