Wednesday, December 7, 2022
    HomeEthereumEthereum Layer 3 Protocols Might Be A Thing, Here’s What To Expect

    Ethereum Layer 3 Protocols Might Be A Thing, Here’s What To Expect


    With the completion of the Ethereum Merge, founder Vitalik Buterin has turned his consideration to different issues that might assist enhance the community. Ethereum Layer 2 protocols had been large enterprise again within the bull market of 2021, and even now, they proceed to assemble assist from community customers who proceed to make use of these roll-ups. Now, Buterin has pointed to the opportunity of Layer 3 protocols on the community. Right here’s what he expects them to do.

    Ethereum Layer 3 Protocols

    In a publish, Ethereum founder Vitalik Buterin delves into the concept of Layer 3 protocols which have been circling the area now. At first, the concept began that with the performance of the present Layer 2 protocols, it was doable to construct on them to offer much more scalability. Buterin refutes this in his publish: “Sadly, such easy conceptions of layer 3s not often fairly work out that simply.” So what then could make a profitable Layer 3 protocol?

    The bottleneck comes from the information that must be saved on the blockchain as transactions are processed. Layer 2s already do a very good job of compressing the information wanted to retailer transactions on-chain however don’t get rid of the necessity to retailer information on-chain. Given this, as soon as the information is already compressed as soon as to scale back its dimension, it’s not possible to compress it once more. Because of this it isn’t doable to get extra scaling by simply constructing a Layer 3 rollup onto a Layer 2 roll-up.

    Ethereum price chart from

    ETH worth trending above $1,300 | Supply: ETHUSD on

    The pure conclusion for a way Ethereum Layer 3 protocols would then work can be that they’d have totally different functionalities from the already present Layer 2 protocols. So, the place an L2 can be targeted on scaling, an L3 would go in direction of extra specialised performance like privateness. This discards the concept of desirous to ‘enhance’ upon the compression of Layer 2 and as an alternative offers L3s one thing new to work and deal with. 

    This personalized performance can go in direction of something, actually. It might go in direction of personalized scaling the place functions might use compressed information for particular functions in response to a specific information format, doing computations utilizing one thing aside from EVMs, and so forth. Buterin additionally notes that the place Layer 2 options are for trestles scaling, Layer 3s could be for “weakly-trusted scaling (validiums).”

    Layer 3s would additionally possible present higher operations for cross-chain transactions because the “three-layer mannequin permits a whole sub-ecosystem to exist inside a single rollup, which permits cross-domain operations inside that ecosystem to occur very cheaply, while not having to undergo the costly layer 1.”

    The Ethereum Layer 3 protocols are nonetheless very a lot an idea concept proper now, however the Ethereum founder factors to a framework that was proposed by Starkware as one which carries loads of promise. This extra refined framework goes past the varsity of considered simply stacking one other layer atop a Layer 2 and anticipating it to extend the compression. Buterin factors out that this can be a good concept “if it’s completed in the fitting manner.”

    Featured picture from The Ecoinomic, chart from

    Observe Best Owie on Twitter for market insights, updates, and the occasional humorous tweet…


    Source link

    Related articles


    Please enter your comment!
    Please enter your name here


    Latest posts