Robinhood Plans to Launch Ethereum Layer 2 Network

Many companies are interested in launching their own Ethereum layer 2 networks, despite an existing large number of over 150. These include centralized networks linked to single enterprises.

Layer 2 networks offer benefits over launching a new layer 1 blockchain, providing integration with Ethereum's ecosystem while allowing for some control similar to private blockchains.
Ethereum remains the dominant smart contract platform, holding about 50% of the decentralized finance market share.
Layer 2 networks must purchase transaction processing space on Ethereum, but costs are generally low compared to other options.
Despite potential profitability, many layer 2 networks struggle with low transaction volumes and market differentiation.
Successful layer 2 networks often aggregate significant transaction volume and serve financial services firms with large retail customer bases.

For most companies, directly connecting to Ethereum or using open layer 2 networks is more economical than establishing their own network. However, some firms may still pursue their own layer 2 networks due to perceived control and potential advantages, though only a few are likely to succeed.