In the fast-evolving world of blockchain technology, discussions about scalability, neutrality, and permissionlessness are at the forefront. Recently, a thought-provoking exchange on X (formerly Twitter) between industry heavyweights Matt Huang of Paradigm and Austin Federa, former strategy lead at Solana, has sparked renewed interest in these topics. At the center is Tempo, a new blockchain project aimed at revolutionizing global payments while staying true to crypto's core principles.

Federa's tweet, posted on September 6, 2025, highlights a key challenge in convincing partners of a single sequencer's neutrality in Layer 2 (L2) solutions. He questions whether this is a valid business concern and notes that, as far as he knows, only MegaETH Labs is actively discussing sequencer rotation as a solution. You can check out the original post here.

This tweet quotes a detailed thread from Huang, where he outlines Tempo's commitment to being a fully permissionless chain from day one. Permissionlessness, in blockchain terms, means anyone can deploy tokens, transact, or participate without needing approval from a central authority—much like Bitcoin or Ethereum. Huang emphasizes that Tempo will start with a permissioned validator set for initial stability but plans to decentralize further, ensuring base layer neutrality. This principle, detailed in Paradigm's 2022 article on Base Layer Neutrality, argues that the foundational layer of a blockchain should remain impartial, similar to how internet service providers handle data packets without discrimination.

Why Choose L1 Over L2 for Payments?

Huang's post delves into why Tempo is being built as a Layer 1 (L1) chain rather than an L2 on Ethereum. L1s are independent blockchains like Solana or Ethereum itself, while L2s are scaling solutions built on top of L1s to handle more transactions efficiently. For Tempo, the decision boils down to trust and neutrality. Building a global payments network requires onboarding thousands of partners who might not trust a single entity—like a sequencer in an L2—to act fairly in the long run.

Key technical priorities for Tempo include fast finality (quick confirmation of transactions), multiple validators for decentralization, and custom features like transaction lanes and gas pricing. While some of these could theoretically be implemented on an L2, Huang points out the complexities, dependencies on Ethereum's progress, and potential delays. Tempo's stablecoin focus also prioritizes native issuance over bridges to other chains.

This approach contrasts with the growing popularity of L2s, which offer cheaper and faster transactions but often rely on a single sequencer for ordering transactions. Federa's query underscores a potential blind spot: how do L2 advocates address partners' doubts about neutrality? Replies to his tweet mention projects like Rise Chain using Ethereum's based sequencing for ultimate neutrality, Starknet's decentralization efforts, and critiques of sequencer rotation without full permissionlessness.

Implications for Meme Tokens and Blockchain Practitioners

For those in the meme token space, Tempo's developments could be a game-changer. Meme tokens, often launched on high-throughput chains like Solana, rely on rapid, low-cost transactions to fuel viral trading and community engagement. A permissionless payments-focused L1 like Tempo could provide robust rails for stablecoin integrations, making it easier to buy, sell, or tip with meme tokens across borders without intermediaries.

Imagine seamless on-chain payments for meme-inspired NFTs or community rewards—Tempo's emphasis on compliance tools for asset issuers could bridge the gap between fun, speculative assets and real-world utility. As blockchain practitioners, understanding these debates helps in choosing the right infrastructure. Whether you're building on Solana's speed or Ethereum's ecosystem, the push for neutrality ensures that innovations like Tempo don't compromise crypto's decentralized ethos.

Projects like MegaETH Labs, mentioned by Federa, are exploring sequencer rotation to distribute control and enhance trust. Other frameworks, such as those in Starknet or Rise, show the community's ongoing efforts to solve these puzzles. As the industry matures, balancing permissionlessness with regulatory compliance will be key to onboarding mainstream adoption.

This conversation reminds us that crypto's strength lies in its openness. Tempo isn't about tribalism—it's about building neutral, efficient tools for everyone, from meme token enthusiasts to institutional players. Keep an eye on these developments; they could shape the next wave of blockchain payments.