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

Ethereum Layer 3 Protocols

In a submit, Ethereum founder Vitalik Buterin delves into the thought of Layer 3 protocols which have been circling the area now. At first, the thought began that with the performance of the present Layer 2 protocols, it was potential to construct on them to offer much more scalability. Buterin refutes this in his submit: “Unfortunately, such simple conceptions of layer 3s rarely quite work out that easily.” 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 cut back its measurement, it’s unimaginable to compress it once more. This implies that it isn’t potential to get extra scaling by simply constructing a Layer 3 rollup onto a Layer 2 roll-up.

Ethereum price chart from TradingView.com

ETH value trending above $1,300 | Source: ETHUSD on TradingView.com

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

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

Layer 3s would additionally doubtless present higher operations for cross-chain transactions because the “three-layer model allows an entire sub-ecosystem to exist within a single rollup, which allows cross-domain operations within that ecosystem to happen very cheaply, without needing to go through the expensive 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 quite a lot of promise. This extra refined framework goes past the college of considered simply stacking one other layer atop a Layer 2 and anticipating it to extend the compression. Buterin factors out that it is a good concept “if it’s done in the right way.”

Featured picture from The Ecoinomic, chart from TradingView.com

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




Please enter your comment!
Please enter your name here