At the extremes, we will see centralization:
1. small layer 1 = high fees, users priced out, usage of layer 1 is controlled by gatekeepers
2. large layer 1 = high cost of validation, users priced out of validation, layer1 is controlled by gatekeepers
Those seem like the two options.
I'm much more interested in a system that anyone can transact on without permission, than one that anyone can validate, but almost no one can actually afford to transact on.
What good is a system that almost no one can afford to transact on?
But you can't transact without permission in a model where both validation and mining are controlled by corporations. You are just counting on the corporations to not censor your transaction.
Yes, you are free to download a wallet, and make a transaction, but same goes for transactions under layer 2. You are also free to do so.
It seems reasonable to me that users must have the power of full validating nodes at hand, because ultimately full validating nodes are what defines what bitcoin is to the user.
By giving up on this power and putting it into the hands of corporations, you are letting a 3rd party to choose what bitcoin is for you. This is a fatal mistake in the long term. Users have 0 power anymore and are basically ruled out of the game theoretical dynamics. And not only this, but you kill the "digital-gold" feature of bitcoin for long term holders.
You might as well use Ripple at that point.
With Bitcoin we have the opportunity to have both a decentralized, long term storage digital gold (expensive to move, because decentralization is not cheap) + trillions of transactions daily offchain, with reasonable levels of decentralization, and backed by an actual decentralized network of nodes at layer 1 that is impossible to shut down, so actually more decentralized than the "2. large layer 1" model.
This model achieves the same as "2. large layer 1" without ruling out users off the game-theory dynamics, and keeps the core of the network safe from global attackers, because no matter what happens in layer 2, it all falls back down to a decentralized network of users running it. All the Lightning Network transaction packages that go into the blockchain, get ultimately validated by users.
Realize the fatal mistake of nodes being only run by corporations: Since those corporations are ultimately subjected by government laws, and they will be forced to disclose the location of all their node-validating buildings, the ENTIRE network can be shut down at any moment, if suddenly governments decide they had enough with bitcoin. Or they could mold it into whatever they want. I don't see how promoting this view isn't absolute nonsense.
Imagine what the value proposition of TOR would be if only corporations were allowed to run nodes.
Also, Lightning Network transactions will be this easy:
https://twitter.com/JackMallers/status/ ... 0777149440
so user experience isn't a problem.
There doesn't seem to be any convincing argument to penalize decentralization at the very core (layer 1) of the network, given that open source payment channel protocols can save us from doing so.
Relevant videos:
https://www.youtube.com/watch?v=fNk7nYxTOyQ
https://www.youtube.com/watch?v=gF_ZQ_eijPs