Dive into Layer3: The Next Narrative for Web3’s “Purpose”?

Dive into Layer3: The Next Narrative for Web3's "Purpose"?

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In blockchain development over the past few years, the Layer paradigm has been changing. Recently, V-God emphasized the significance of Layer 3 because the architecture can optimize and improve networks, provided that they have different capabilities. But with the abundance of available multi-chain solutions, can L3 compete with current L2 and L1? Existing L2 has yet to solve the blockchain trilemma (which is also one of the biggest narratives in Web3). Below, Odaily Planet Daily takes you to explore whether L3 can really solve this scalability problem of the past decade.

An introduction to the layers of Crypto

L1 refers to a blockchain, such as Ethereum or any blockchain that can exist independently. In other words, those chains that are not built on another chain and can operate completely independently. L2 is a third-party integration that works with the L1 blockchain. Essentially, they are extending the underlying L1-based solution, adding security and scalability.

So what is L3? Do we just build L3 on top of L2 to improve performance and security? Simply put, it is to change the scaling solution to get a higher-level scaling solution. Ethereum is so crowded that people want to add another layer to prevent it. But each layer has some new features that don’t allow stacking, which means scalability can only be improved once.

Recently, Starkware came up with a more viable idea for L3, adding layers for different purposes. As V God emphasizes, this approach may actually work, but let’s first look at why we can keep scaling by overlaying rollups on top of them.

Problems with Rollup

Rollup executes transactions outside of the main Ethereum blockchain and sends data back to the main Ethereum network. Rollup can also be thought of as a scaling technique that mainly solves two bottlenecks – compute and data. Computation refers to proof of fraud or SNARKs, which rely on a small number of participants to process and validate a block, requiring others to perform only a small portion of the computation to ensure validity.

This means that SNARKs can scale almost indefinitely, for example, a SNARK is embedded in a SNARK, which is a subset of SNARKs in the SNARK ecosystem.

However, the data is a bit more complex. The purpose of rollup is to compress on-chain data, which is why there is a lot of narrative about zK proof solutions because it compresses nearly 8x more data. The problem is that Rollup still needs on-chain data to be open source and for users to access and authenticate the data. This allows them to independently calculate the state of the rollup and join as provers if the previous rollup was inactive.

Unlike calculations, data cannot be compressed repeatedly, only once. Therefore, you can embed Rollup as a subset of Rollup in the Rollup ecosystem, but this does not improve scalability.

Starkware’s vision for L3

The current version of Starkware uses layers for different purposes. Essentially, if Rollup compresses data by 8x, then Rollup on top of Rollup compresses data by 64x.

Using Starkware’s L3 as an example, V God proposed 3 “L3 visions”, which are mainly composed of 3 main purposes, again emphasizing that L2 and L3 need to have different purposes. Key points include:

  • L2 can be used for extension, while L3 is used for customized functions such as privacy;
  • L2 is for general purpose expansion, while L3 is used for custom expansion;
  • L2 is used for trustless extensions, also known as rollups, while L3 is used for low-trust scaling solutions.

Dive into Layer3: The Next Narrative for Web3's "Purpose"?

From Delphi Digital.

Is L3 really more efficient than L2?

I think yes, it is cheaper than the existing L2 model. Deposits and withdrawals can be made between L2 and L3 without interacting with the underlying chain (L1). This means that tokens can be transferred between L2 without having to return to the main chain or L1. The problem is that deposits need to wait for the fraud prevention window. For example, if a token comes from Ethereum, then a withdrawal from L2 with the underlying contract or wrapper contract to Ethereum will require a huge delay, while the deposit is instantaneous.

This is where zK-rollups come into play, as they are much faster and do not require such long wait times for security reasons. In addition, the cost of rollup is relatively low. However, there is a high fixed cost of submitting bulk transactions to the chain. Rollup can wait until there is a large demand for transactions before submitting a batch, which forces users to wait for high-security confirmations. This approach is not feasible for businesses and retail businesses.

Imagine waiting 12 hours for an instant transaction, which is not feasible for everyday trading. This means that there are two options, waiting longer for low costs, or waiting for a shorter time to get higher costs. L3 solves this problem because zK-rollup in zK-rollup will greatly reduce the cost by nearly 20 times, meaning transactions can be sent at a fast pace while still maintaining a high level of security.

However, if the demand is still low, it can cause problems, but we can optimize it by adding another layer (L4) on top of L3. If we use L3 for custom transactions, we can create L4 as a one-time layer to use only when traffic is attenuated.


All in all, an L3 scaling solution that overlays the same layer on top of itself won’t work. L2 leverages the security of the underlying L1 while improving performance; L3 can extend the capabilities of the current blockchain by implementing “custom extensions”; Combined with new programming languages, L3 may be a real factor driving mass adoption. While Rollup may not be the best solution, leveraging its technology can help improve the overall functionality of any blockchain network.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/dive-into-layer3-the-next-narrative-for-web3s-purpose/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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