The next is a visitor publish 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 way in which for mass adoption. In the identical means, 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 concerning the position of Layer-3s is an energetic one for us at Horizen Labs. The Horizen DAO has lately handed a vote to hitch the Base ecosystem, a pivotal governance choice 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 signify the following 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 achieve a billion customers, transactions must be quick, low cost, and seamless. Layer-3s aren’t an educational 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—corresponding to enhanced ZK capabilities.
Essentially, Layer-3s deal with a core downside: If Ethereum (Layer-1) is pricey, Layer-2s assist by processing transactions off-chain and solely committing ultimate state proofs to Layer-1. Layer-3s take this additional by deciding on Layer-2s as an alternative of straight on Ethereum, making a hierarchical mannequin that minimizes prices at every degree.
Layer-3s emerged naturally as blockchain architects sought higher efficiencies. StarkWare first outlined the idea in late 2021 below 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 concept to follow.
Not Everybody Is a Fan
Critics argue a number of factors towards 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 targets might be achieved by optimizing Layer-2 options.
Nonetheless, an important realization is rising that makes Layer-3s much more well timed: even Layer-2s, constructed to allow sooner, cheaper transactions, would possibly nonetheless fall brief.
In some circumstances, a Layer-3 can summary prices even additional, guaranteeing near-zero gasoline charges. This price abstraction is important. Blockchain adoption requires transactions which are almost free to the top consumer, and Layer-3s present exactly this functionality.
That brings a chain-abstracted future nearer. In the end, that’s higher for onboarding new customers, higher for liquidity, and higher for incentivizing the constructing of recent 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 complete ecosystem advantages.
However abstraction isn’t nearly price 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 important 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 troublesome this journey will be.
Layer-3s supply another path the place chains can stay linked 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 circumstances, whether or not it’s zero-knowledge proofs, gaming, DeFi, social networks, or enterprise functions. They’ll implement customized digital machines, consensus mechanisms, or privateness options tailor-made to their wants, all whereas staying linked 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 sophisticated, however there’s an excellent likelihood that it may clear up its personal downside. The complexity can be invisible to finish customers if applied accurately.
Fashionable dApps can summary away the underlying layers via 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 price effectivity with out sacrificing safety. They permit specialised optimization whereas sustaining ecosystem connections. These aren’t simply nice-to-have options. They’re important for blockchains to attain 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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