<img src="https://cryptoslate.com/wp-content/uploads/2025/01/ethereum-.jpg” />
Phala Network, a Polkadot parachain, has expanded its reach to the ethereum blockchain by introducing a Layer 2 rollup protocol designed to increase scalability and efficiency.
According to a report from January 8 <a target="_blank" href="https://x.com/PhalaNetwork/status/1877052813383184606″>statement:
“Phala Network has taken a big step forward in blockchain innovation by launching the first Op-Succinct Layer 2 (L2) rollup on ethereum. “This transformative achievement is the result of a strategic partnership with Succinct Labs and Conduit.”
The layer 2 solution integrates optimistic and zero-knowledge (ZK) proofs through OP-Succinct technology. This technology increases the capabilities of OP rollups built on OP Stack by incorporating ZK tests that ensure faster finality, lower costs, and greater security.
Meanwhile, Phala's transition to ethereum aligns with its vision of offering advanced cryptographic computing. The network's Trusted Execution Environment (TEE) technology allows developers to deploy secure smart contracts, particularly in ai-powered decentralized applications.
Additionally, its rollup introduces Dstack features that simplify the transition from Web2 systems to blockchain-based Web3 configurations. It also supports decentralized ai applications, such as autonomous agents, while strengthening blockchain security through advanced cryptographic layers.
Layer 2 networks increase
Phala's move reflects growing interest in ethereum's Layer 2 solutions.
Data from L2beat highlights a strong increase in accumulations within the ethereum ecosystem, with the sector seeing rapid expansion over the past year. During this period, key players such as Kraken and Deutsche Bank have ventured into building layer 2 blockchains on ethereum.
However, this increase in Layer 2 networks raises concerns within the community about fragmented liquidity pools and reduced market efficiency.
Still, proponents argue that niche-specific blockchains offer clear advantages. These chains can focus on specific use cases, optimize technical stacks, and foster dedicated communities through governance and native tokens.
Additionally, transaction fees and customized solutions on these platforms can create sustainable revenue streams for the organization.
Disclaimer: CryptoSlate received a grant from the Polkadot Foundation to produce content about the Polkadot ecosystem. While the Foundation supports our coverage, we maintain full editorial independence and control over the content we publish.
