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

Ethereum Layer 3

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 huge enterprise again within the bull market of 2021, and even now, they proceed to collect assist 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 house now. At first, the thought began that with the performance of the prevailing Layer 2 protocols, it was doable to construct on them to offer much more scalability. Buterin refutes this in his submit: “Unfortunately, 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 info that must be saved on the blockchain as transactions are processed. Layer 2s already do an excellent job of compressing the info wanted to retailer transactions on-chain however don’t remove the necessity to retailer knowledge on-chain. Given this, as soon as the info is already compressed as soon as to cut back its dimension, it’s inconceivable to compress it once more. This signifies that it isn’t doable to get extra scaling by simply constructing a Layer 3 rollup onto a Layer 2 roll-up.

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The pure conclusion for a way Ethereum Layer 3 protocols would then work could be that they might have completely different functionalities from the already current 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 ‘enhance’ upon the compression of Layer 2 and as an alternative offers L3s one thing new to work and concentrate on. 

This personalized performance can go in the direction of something, actually. It can go in the direction of personalized scaling the place purposes might use compressed knowledge for particular purposes based on a selected knowledge 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 might be for “weakly-trusted scaling (validiums).”

Layer 3s would additionally seemingly 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 numerous promise. This extra subtle 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 this can be a good concept “if it’s performed in the best means.”

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