The next is a visitor put up from Rob Viglione, CEO at Horizen Labs.
If we had stopped at dial-up web, we’d by no means have gotten Netflix, real-time gaming, or cloud computing. The evolution of web infrastructure paved the best way for mass adoption. In the identical manner, Layer-3s are an inevitable evolution of blockchain infrastructure—eradicating friction, reducing prices, and making blockchain actually prepared for mainstream customers. But, critics proceed to argue that they add pointless complexity.
This debate in regards to the position of Layer-3s is an lively one for us at Horizen Labs. The Horizen DAO has not too long ago handed a vote to hitch the Base ecosystem, a pivotal governance resolution that marks the start of Horizen’s transition to Base, Coinbase’s Layer 2 community, as an appchain specialised in privacy-preserving functions. We’re satisfied by the Layer-3 thesis and imagine that Layer 3s symbolize the subsequent evolution in blockchain scalability.
Horizen’s transfer to Base isn’t nearly following developments, it’s about recognizing {that a} extra modular, interoperable blockchain stack is the important thing to driving real-world adoption. We’re not simply theorizing; we’re constructing.
The Historical past
For crypto to succeed in a billion customers, transactions should be quick, low-cost, and seamless. Layer-3s aren’t a tutorial train—they’re a sensible response to the truth that even Layer-2s aren’t low-cost sufficient for mass adoption. Layer-3s additionally optimize for particular options that aren’t at present potential on Layer-1s and Layer-2s—resembling enhanced ZK capabilities.
Basically, Layer-3s deal with a core downside: If Ethereum (Layer-1) is pricey, Layer-2s assist by processing transactions off-chain and solely committing closing state proofs to Layer-1. Layer-3s take this additional by deciding on Layer-2s as an alternative of immediately on Ethereum, making a hierarchical mannequin that minimizes prices at every degree.
Layer-3s emerged naturally as blockchain architects sought larger efficiencies. StarkWare first outlined the idea in late 2021 beneath the time period “fractal scaling.” Vitalik Buterin explored Layer-3 designs in 2022, suggesting specialised functions past easy scaling. By 2023, main Ethereum scaling groups started implementing Layer-3 frameworks. Arbitrum launched Orbit for launching Layer-3 “Orbit chains.” Matter Labs launched ZK Stack for constructing zk-rollups as both Layer-2s or Layer-3s. These developments have pushed Layer-3s from idea to apply.
Not Everybody Is a Fan
Critics argue a number of factors in opposition to Layer-3s: many imagine Layer-2 options haven’t reached full maturity but, and making Layer-3s is untimely. Some argue Layer-3s add complexity. However nice expertise is about making complexity invisible to customers—similar to the web did. Some view Layer-3s as redundant, arguing their objectives could possibly be achieved by optimizing Layer-2 options.
Nevertheless, an important realization is rising that makes Layer-3s much more well timed: even Layer-2s, constructed to allow sooner, cheaper transactions, may nonetheless fall quick.
In some instances, a Layer-3 can summary prices even additional, making certain near-zero gasoline charges. This value abstraction is important. Blockchain adoption requires transactions which can be almost free to the top person, and Layer-3s present exactly this functionality.
That brings a chain-abstracted future nearer. Finally, that’s higher for onboarding new customers, higher for liquidity, and higher for incentivizing the constructing of latest dApps onchain. When customers can transact with out worrying about gasoline charges, adoption accelerates. Builders can construct functions that wouldn’t be economically viable on higher-fee networks, and liquidity flows extra freely when not constrained by transaction prices. The whole ecosystem advantages.
However abstraction isn’t nearly value financial savings; it’s additionally about usability and customization.
Customization and Connectivity
Layer-3s are additionally a pure response to the worry of ecosystem isolation. Chains don’t wish to be siloed. Standalone Layer-1 blockchains face vital challenges: they need to bootstrap their very own safety, appeal to customers from scratch, and construct a wholly new infrastructure. Many “Ethereum killers” like Cardano, Fantom, or Tezos have found how tough this journey will be.
Layer-3s provide another path the place chains can stay related to established ecosystems whereas offering higher customization choices: that is the place their true potential lies. Utility-specific chains can optimize for his or her distinctive use instances, whether or not it’s zero-knowledge proofs, gaming, DeFi, social networks, or enterprise functions. They will implement customized digital machines, consensus mechanisms, or privateness options tailor-made to their wants, all whereas staying related to the broader ecosystem, benefiting from its liquidity and safety.
This mix of customization and connectivity makes these application-specific apps excel at what they do, in the end benefiting the top customers.
A Pathway to Abstraction
Folks could declare that Layer-3s make web3 too difficult, however there’s probability that it may remedy its personal downside. The complexity will probably be invisible to finish customers if applied appropriately.
Fashionable dApps can summary away the underlying layers by way of good pockets designs and intuitive interfaces. Customers needn’t know which layer they’re transacting on any greater than web customers want to grasp TCP/IP protocols. They merely expertise sooner, cheaper transactions, and higher merchandise.
This pure evolution in blockchain structure is a constructive step. Layer-3s stability sovereignty with interoperability. They maximize value effectivity with out sacrificing safety. They allow specialised optimization whereas sustaining ecosystem connections. These aren’t simply nice-to-have options. They’re important for blockchains to realize mainstream adoption.
The web didn’t take off as a result of customers understood packet-switching or HTTP protocols. It took off as a result of it simply labored. Layer-3s carry us nearer to a blockchain world that ‘simply works’—seamless, quick, and cost-effective. And that’s how crypto wins.
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