Talks about Layer 3 networks are currently in the spotlight, as stated by well-known ethereum co-founder Vitalik Buterin joins the growing debate in the community, offering key perspectives on solutions.
ethereum Co-Founder on Layer 3 Solutions
ethereum co-founder offered his key insights on L3 networks in a recent x x.com/VitalikButerin/status/1775015326419439768?s=20″ target=”_blank” rel=”noopener nofollow”>mail, noting that the solutions do not miraculously improve performance, although they may reduce some overheads related to deposits and withdrawals and batch posting.
However, he states that there are alternative, possibly lighter techniques, to achieve the same cost savings as with Layer 3, while citing parts of his previous blog post from almost two years ago.
The blog post called “What Type of Layer 3 Makes Sense?” describes the meaning of the three different iterations of layer 3 within the ethereum ecosystem. The first iteration states that L3s are for specialized functionality, while L2s are for scaling.
Rather than aiming for “scalability squared,” this strategy consists of a single layer of application scaling in the stack, with additional layers that satisfy the customized functional requirements of various use cases.
For the second version, it indicates that L3 is for custom scaling, while L2 is for general purpose scaling. Specialized applications that perform their computation through a method other than EVM or rollups whose data compression is tailored to particular data formats for particular applications are some examples of how custom scaling could manifest itself.
Finally, L2 is for scaling without trust (rollups), while L3 is for scaling with a low level of trust (Validiums). These Validiums are systems that rely on a committee or trusted third party to provide the data, but use SNARK to validate the calculation and are highly underrated. This is because a centralized server running a Validium tester and constantly sending hashes to the chain could be the most suitable solution for various enterprise blockchain applications.
Layer 3 debate builds pressure
The ethereum co-founder's overview comes after Polygon Labs Chief Executive Officer (CEO) Marc Boiron offered a pessimistic outlook on layer 3 solutions. Boiron highlighted that they could jeopardize the value of eth and the L2s that form the basis of the L3s.
He believes that the ethereum ecosystem and the crypto space do not significantly benefit from these networks. “If all L3s were set to an L2, then ethereum would essentially not capture any value and therefore the security of ethereum would be at risk,” he said.
This heated debate coincides with the introduction of the low-cost layer 3 blockchain, Degen Chain, by the Degen ecosystem. Built with AnyTrust DA and Arbirtrum Orbit, Degen Chain is a memecoin project in Basic network.
So far, the project has gained widespread community adoption, registering almost 100,000 active accounts in less than a week. Its trading volume also saw a significant increase, reaching almost $100 million within 24 hours of its debut.
Featured image from YouTube, chart from Tradingview.com
