{"id":49507,"date":"2024-04-01T04:41:07","date_gmt":"2024-04-01T04:41:07","guid":{"rendered":"https:\/\/jalancoin.com\/index.php\/2024\/04\/01\/polygon-ceo-says-l3s-are-taking-value-away-from-ethereum-sparking-debate\/"},"modified":"2024-04-01T04:41:07","modified_gmt":"2024-04-01T04:41:07","slug":"polygon-ceo-says-l3s-are-taking-value-away-from-ethereum-sparking-debate","status":"publish","type":"post","link":"https:\/\/jalancoin.com\/index.php\/2024\/04\/01\/polygon-ceo-says-l3s-are-taking-value-away-from-ethereum-sparking-debate\/","title":{"rendered":"Polygon CEO says L3s are taking value away from Ethereum, sparking debate"},"content":{"rendered":"

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Polygon CEO Marc Boiron has riled up debate on X over the weekend after arguing that layer-3 networks aren\u2019t necessary to scale Ethereum and exist only to rob the mainnet of value.\u00a0<\/p>\n

On April 1, the Polygon CEO said that Polygon Labs, a layer-2 scaling network for Ethereum, does not work on layer 3s because they are not needed to scale existing networks. <\/p>\n

\u201cL3s exist only to take value away from Ethereum and onto the L2s on which the L3s are built,\u201d he said.<\/p>\n

However, Boiron\u2019s comments didn\u2019t go unchallenged. One respondent commented that layer-2s on Ethereum \u201cARE value on Ethereum,\u201d to which Boiron replied in partial agreement, but adding:<\/p>\n

\u201cI disagree that L2 value is Ethereum value. Just take this to the extreme. If all L3s settled to one L2, then Ethereum would capture basically no value, and, thus, Ethereum security would be at risk.\u201d<\/p><\/blockquote>\n

\u201cAlso, we don\u2019t care what people do. They can build L3s on anything, including Polygon networks,\u201d he continued before adding. \u201cWe just aren\u2019t trying to suck all value onto Polygon networks instead of sharing with Ethereum its fair share.\u201d<\/p>\n

Source: <\/em>Marc Boiron<\/em><\/a><\/figcaption><\/figure>\n

Boiron added that Polygon\u2019s mission was to scale Ethereum when nobody else did it, when the right tech was ready, using parallelization of the EVM and with privacy. He argued that \u201cL3s are not consistent with that mission.\u201d<\/p>\n

Layer-3 protocols are built on top of L2s to host application-specific DApps providing a range of solutions for scaling, performance, interoperability, customization, and costs.<\/p>\n

Current leading players in the L3 ecosystem and solutions from L2 networks include Orbs, Xai, zkSync Hyperchains, and the recently launched Degen Chain on Arbitrum Orbit. However, the sector is still small by comparison, with only four L3 tokens listed<\/a> by CoinGecko.<\/p>\n

Related: <\/em><\/strong>You can now deploy your own L3 rollup for $50 a month<\/em><\/strong><\/a><\/p>\n

Meanwhile, the senior partnership manager at Offchain Labs, Peter Haymond,\u00a0argued<\/a> that there were many benefits to L3s that don\u2019t take value from Ethereum. <\/p>\n

The low cost of native bridging from L2 rather than L1, the low cost of proving on-chain, custom gas tokens, and specialized state transition functions were among some of them. <\/p>\n

Arbitrum Foundation researcher Patrick McCorry said<\/a> he was surprised by Boiron\u2019s take, adding: <\/p>\n

\u201cL3s seem like a no-brainer, especially when it allows the L2 to eventually become a settlement layer (ie executing the bridge is cheaper) and ultimately relying on Ethereum as global ordering service + final judge of settlement.\u201d<\/p><\/blockquote>\n

On March 31, Helus Labs CEO Mert Mumtaz appeared to agree with Marc Boiron in a separate post on X, stating that \u201cL3s are basically centralized servers settling on other centralized servers (L2s) \u2014 controlled by multisigs.\u201d <\/p>\n

Source: <\/em>Mert Mumtaz<\/em><\/a><\/figcaption><\/figure>\n

Ethereum co-founder Vitalik Buterin ignited the L3 debate<\/a> in late 2022 when he said that layer-3s will serve a different purpose to scaling by providing \u201ccustomized functionality.\u201d A third layer on the blockchain makes sense only if it provides a different function to layer-2s, he said at the time.\u00a0<\/p>\n

Magazine: <\/em><\/strong>Big Questions: What did Satoshi Nakamoto think about ZK-proofs?<\/em><\/strong><\/a><\/p>\n