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Ethereum 2.0 hasn't offered much in terms of data management and data privacy. Scalability still poses an issue. From what it looks like, Ethereum 2.0 was mainly developed to solve the issue of gas fees, a prevalent problem in the Ethereum Network, neglecting other key areas.
Arcana solves this gap that a pure decentralized storage platform or Layer 1 Blockchain like Ethereum is not capable of.