WHY ETHEREUM'S L1 STATE OWNERSHIP IS NON-NEGOTIABLE

Summary from the TLDR Crypto newsletter

Offchain computation with onchain proofs creates a cryptographic bulletin board, not a world computer. Ethereum Foundation researcher Barnabé Monnot draws the line at state ownership: Ethereum's network effects derive from its liquidity and accessible onchain state, which allow permissionless actions like liquidations without dependence on brittle third-party APIs or centralized servers. Composability scales with how granular and accessible onchain state is, and offchain state resolution fractures that permissionless composability. The Ethlabs vision follows: L1 as liquidity hub and secure asset layer, with L2s as differentiated state neighborhoods that reinforce and extend L1 network effects while absorbing the offchain economy.