# #2 What I Read This Week...

By [chandan](https://paragraph.com/@iamchandan) · 2024-04-07

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L3s, Appchains, AI, Enjoy, zk

Some articles I published this week:

[https://mirror.xyz/iamchandan.eth/7unTTznU4pcwslxCuEhDSHlgwdHDwFrpYCfdvL5Mr0U](https://mirror.xyz/iamchandan.eth/7unTTznU4pcwslxCuEhDSHlgwdHDwFrpYCfdvL5Mr0U)

[https://mirror.xyz/iamchandan.eth/FeWTcMQfYiTVzqR1HTAnZHp4H3LIlUghT4Sm3mgwjFg](https://mirror.xyz/iamchandan.eth/FeWTcMQfYiTVzqR1HTAnZHp4H3LIlUghT4Sm3mgwjFg)

[![]({{DOMAIN}}/editor/youtube/play.png)](https://www.youtube.com/watch?v=XDpO0fg8hys)

1.  Network effects are most important in the crypto space.
    
2.  The core problem is the gas fee, as network usage increases, the gas fee also increases. We have seen this with Solana, Base, and Ethereum.
    
3.  DeFi is the encoding of mathematical relationships with tokens.
    
4.  DEX: k = xy.
    
5.  In lending, collateral is greater than debt.
    
6.  Bridges are complex because they have intricate systems that need to be connected.
    
7.  The compounding effect of more users, applications, and tokens is significant.
    
8.  The power law distribution of chain usage depends on the introduction of blockchains.
    
9.  Institutions will create their own chains so that they can exert more control. Coinbase is launching Base.
    

[![]({{DOMAIN}}/editor/youtube/play.png)](https://www.youtube.com/watch?v=vRw902XShGM)

BlackRock Tokenized fund on Ethereum: RWA Tokens pump like crazy

Tokenization enables Global Reach, Speed, Cost reduction.

Next Big thing to Tokenization will be US stocks very much popular out of US.

*   The proliferation of appchains and layer 2 solutions is creating additional overhead for developers.
    
*   The narrative in the space seems to be shifting towards layer 3 solutions.
    
*   There has been a surge in the number of memo coins launching on Base.
    

Memo coin segmented market with left and Right curve investors.

[https://app.blockworksresearch.com/unlocked/decentralized-physical-infrastructure-networks-embracing-the-power-of-token-incentives-to-bootstrap-networks](https://app.blockworksresearch.com/unlocked/decentralized-physical-infrastructure-networks-embracing-the-power-of-token-incentives-to-bootstrap-networks)

[https://x.com/DarenMatsuoka/status/1776246574869598709](https://x.com/DarenMatsuoka/status/1776246574869598709)

[https://x.com/ph0rt0n/status/1776265950876082258](https://x.com/ph0rt0n/status/1776265950876082258)

[https://x.com/Delphi\_Digital/status/1776261318808379518](https://x.com/Delphi_Digital/status/1776261318808379518)

[https://x.com/reganbozman/status/1776293611036197059](https://x.com/reganbozman/status/1776293611036197059)

[https://x.com/MonetSupply/status/1775949243527962890](https://x.com/MonetSupply/status/1775949243527962890)

[https://x.com/0xCygaar/status/1773436169918812311](https://x.com/0xCygaar/status/1773436169918812311)

[https://x.com/sgoldfed/status/1773485333713125789](https://x.com/sgoldfed/status/1773485333713125789)

[https://x.com/ptrwtts/status/1772692130474991629](https://x.com/ptrwtts/status/1772692130474991629)

[![]({{DOMAIN}}/editor/youtube/play.png)](https://www.youtube.com/watch?v=Zd_g1JlThz0)

Abstracting the User experience from On-chain.

[![]({{DOMAIN}}/editor/youtube/play.png)](https://www.youtube.com/watch?v=sBoU8yLnDZg)

1.  All zero-knowledge (Zk) chains are optimistic to some extent because Ethereum can sometimes undergo reorganizations, and we optimistically believe that the team will add the transactions.
    
2.  There will be fewer general layer-2 solutions and more application-specific chains (appchains). Layer 3 is an experimentation zone and has a similar level of trust as web2 applications.
    
3.  Interoperability (Introp) enables asset fungibility between chains, and Optimism is building a shared root of trust.
    
4.  There is a clear path for scaling Ethereum through Distributed Arborescence (DA).
    

[![]({{DOMAIN}}/editor/youtube/play.png)](https://www.youtube.com/watch?v=GHUYdTQAiH0)

[https://x.com/MikeIppolito\_/status/1740165580303561104](https://x.com/MikeIppolito_/status/1740165580303561104)

Enjoy seems very interesting.

[https://twitter.com/enjoytech\_](https://twitter.com/enjoytech_)

See you next week!

Let’s connect at

[https://twitter.com/chandan1\_](https://twitter.com/chandan1_)

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*Originally published on [chandan](https://paragraph.com/@iamchandan/2-what-i-read-this-week)*