Exchanges Build Their Own Blockchain Infrastructure Amid Ethereum Evolution Debate

Centralized exchanges are increasingly turning to building their own Layer 2 (L2) blockchain infrastructure, as seen with Robinhood's recent development efforts. Meanwhile, Ethereum co-founder Vitalik Buterin has proposed a 'tight coupling' path for the network's evolution, which involves staged upgrades and progressive improvements.

The trend towards L2 infrastructure is being driven by concerns over scalability, cost, and user experience on traditional blockchain networks. By building their own L2 solutions, exchanges can offer faster transaction times, lower fees, and improved usability to their users.

However, some experts have raised questions about the potential drawbacks of this approach, including the risk of fragmentation and reduced interoperability between different L2 networks.