Decoding the Layer 3 Solutions
Exploring the insights shared by the Ethereum co-founder on the Layer 3 networks, as the debate gains momentum in the community. Dive into the essence of the solutions and the implications they hold for the crypto space.
Vitalik Buterin’s Perspectives
- Vitalik Buterin shared his views on L3 networks in a recent post, emphasizing that these solutions do not significantly boost throughput. Instead, they aim to reduce fixed expenses related to deposits, withdrawals, and batch publishing.
- He also suggested lighter techniques that could achieve similar cost savings as Layer 3s, referencing his blog post from two years ago.
Distinct Layer 3 Iterations
- The blog post titled “What kind of layer 3s make sense?” sheds light on the three different Layer 3 iterations within the Ethereum ecosystem.
- First iteration: L3s cater to specialized functionality, while L2s focus on scaling.
- Instead of pursuing “scalability squared,” the strategy advocates for a single application-scaling layer, with additional layers addressing specific functional requirements.
- Second version: L3 is for customized scaling, while L2 is for general-purpose scaling. Customized scaling involves specialized applications that compute via methods other than EVM or rollups.
- Lastly, L2 focuses on no-trust scaling (rollups), while L3 emphasizes scaling with a low level of trust (Validiums).
The Rising Pressure of the Layer 3 Debate
- Against the backdrop of the Layer 3 discourse, Polygon Labs CEO Marc Boiron expressed skepticism about the value and impact of Layer 3 solutions, raising concerns about their potential effects on ETH value and Layer 2 networks.
- He cautioned that if all Layer 3s settle on one Layer 2, Ethereum might lose value, posing a security risk to the ecosystem.
- The debate intensifies as the Degen ecosystem introduces Degen Chain, a low-cost Layer 3 blockchain developed with AnyTrust DA and Arbitrum Orbit on the Base network.
- With nearly 100,000 active accounts within a week of its launch, Degen Chain has garnered significant community adoption and recorded a transaction volume of almost $100 million in a day.
Hot Take: The Road Ahead for Layer 3 Solutions
As the conversation on Layer 3 networks gains momentum, it is crucial to assess the diverse perspectives shaping the narrative. Stay tuned to witness how these solutions will evolve and impact the crypto ecosystem in the days to come.
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