DAG based networks (rather than blockchains) such as Fantom and Avalanche seem to be emerging as a way to address scalability issues found on blockchain-based smart contract platforms. Currently, Fantom is doing more transactions per day than Ethereum, with gas costing 1-2 cents for simple transactions and 1-6 cents for smart contract interactions.
The tradeoff, based on my understanding, is that there's not as much resilience to node outages (on both of these, 33% of validators by stake concentration going down could lead to block production halting)
Issues like “33% of validators by stake concentration going down could lead to block production halting” is exactly why systems like DAG-based networks would make great Ethereum L2 networks.
They can have speed and low cost, which inheriting the security of Ethereum. At the same time, if block production ever stopped (like we just saw with Solana), all users can still retrieve their funds by forcing a withdraw back to the Ethereum mainnet.
Networks with low attack thresholds shouldn’t be operating as L1s.
The tradeoff, based on my understanding, is that there's not as much resilience to node outages (on both of these, 33% of validators by stake concentration going down could lead to block production halting)