Robinhood Product Head Johann Kerbrat recently detailed the company's rationale for choosing Ethereum Layer 2 solutions over independent Layer 1 networks. He pointed out that some non-Ethereum Layer 1 networks still face centralization challenges, evidenced by validators simultaneously restarting their equipment during system outages.
Kerbrat emphasized that Layer 2's design allows developers to focus on building applications without expending energy on rebuilding core network components. He believes this underlying architecture provides security assurances to developers without requiring additional engineering investment. Consequently, development teams can concentrate resources on service innovation rather than maintaining fundamental network functions, a consideration that was key to Robinhood's technical decision-making.
Regarding liquidity, Kerbrat stated that an interconnected liquidity environment offers significant advantages for financial service platforms. A project operating in isolation struggles to attract comparable network activity. He likened independent networks to 'private islands,' where users and assets find it difficult to migrate freely between different ecosystems.
Robinhood aims to build services that integrate into the broader financial system, pursuing open access rather than closed infrastructure. Kerbrat revealed that during the early planning stages, Robinhood focused on accessibility and integration with existing liquidity networks, rather than fee revenue. This strategy aligns with the company's overall vision for blockchain infrastructure.
Based on this, Robinhood plans to support financial systems that operate directly on-chain. Therefore, the company opted for a Layer 2 model connected to Ethereum, rather than issuing an independent Layer 1 chain.