Polygon Labs CEO Sounds Alarm on Layer 3 Networks
TL;DR:
- Polygon Labs CEO Marc Boiron raises concerns about layer 3 networks in crypto, warning of threats to Ethereum’s security and value.
- Layer 2 networks gained traction for faster, cheaper transactions, but layer 3 networks could offer even lower gas fees, potentially impacting Ethereum’s value.
- Boiron highlights the risk of diverting value from Ethereum and the importance of maintaining its economic viability amidst the emergence of layer 3 networks.
Polygon Labs CEO Marc Boiron has raised concerns over the emergence of layer 3 networks in the crypto space, warning of potential threats to Ethereum’s security and value.
Layer 2 networks gained prominence last year for offering faster and cheaper transactions by consolidating off-chain transactions into single layer 1 transactions, bolstered by the underlying blockchain’s security.
However, layer 3 networks, which submit transaction bundles to layer 2 networks, promise even lower gas fees, posing as a potential scaling solution, especially for decentralized applications (dApps) and custom functions.
Boiron, while acknowledging layer 3’s efficiency, cautioned against its consolidation onto a single layer 2 network, which could divert value away from Ethereum.
He emphasized the risk to Ethereum’s security if layer 3 networks undermine its economic viability, arguing that a decline in Ethereum’s value could deter validators from securing the network.
I’ll say the quiet part out loud: L3s exist only to take value away from Ethereum and onto the L2s on which the L3s are built.
— Marc Boiron (@0xMarcB) March 31, 2024
*You do not need L3s to scale*
And this is why Polygon Labs does not work on L3s.
Polygon Labs, under Boiron’s leadership, is renowned for its contribution to layer 2 networks, including the Polygon proof-of-stake blockchain and the Polygon zero-knowledge Ethereum Virtual Machine (zkEVM) rollup.
The CEO’s remarks follow the launch of Degen Chain, a layer 3 network built on Ethereum layer 2 Base, catering to the Farcaster community and the DEGEN token, primarily facilitating memecoin trading.
As debates over scalability continue to shape the crypto landscape, Boiron’s warnings highlight the delicate balance between innovation and security in blockchain technology.
Boiron cautioned that consolidation of layer 3 networks onto a single layer 2 could jeopardize Ethereum’s value and security. Polygon Labs is the force behind prominent layer 2 networks, including the Polygon proof-of-stake blockchain and the Polygon zero-knowledge Ethereum Virtual Machine (zkEVM) rollup.
“If Ethereum earns no fees and has no prospect of earning fees other than a tiny amount of fees from this one L2, then the value of ETH will drop,” Boiron added, expressing concerns about Ethereum’s economic future.
These discussions follow the launch of Degen Chain, a layer 3 network on Ethereum layer 2 Base, tailored for the Farcaster community and the DEGEN token. Presently, the chain predominantly facilitates memecoin trading.
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