Robinhood explains building an Ethereum layer-2: 'We wanted the security from Ethereum'

Source: CryptoNewsNet Original Title: Robinhood explains building an Ethereum layer-2: ‘We wanted the security from Ethereum’ Original Link: https://cryptonews.net/news/blockchain/32257138/ Robinhood’s crypto arm deepened its bet on blockchain infrastructure this past year as it expanded its products into tokenized stocks, staking products and a forthcoming layer-2 network built on Arbitrum.

The retail brokerage revealed it was building its own blockchain infrastructure atop Ethereum’s scaling ecosystem, rather than launching an independent layer-1 network. The decision was ultimately about focus.

“The main discussion for us at this point was, really, should we do an L1 or should we do an L2, and the reason why we decided to do an L2 was we wanted to get the security from Ethereum, the decentralization from Ethereum, and also the liquidity that is part of the EVM [Ethereum Virtual Machine] space,” the firm’s crypto chief said. “We also wanted to be able to really focus on what we are good at, which is like building a feature that we are trying to launch, like stock tokens and other things.”