The next is a visitor submit 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 means, Layer-3s are an inevitable evolution of blockchain infrastructure—eradicating friction, decreasing 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 lively one for us at Horizen Labs. The Horizen DAO has just lately handed a vote to affix 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 purposes. We’re satisfied by the Layer-3 thesis and consider that Layer 3s symbolize the following evolution in blockchain scalability.
Horizen’s transfer to Base isn’t nearly following tendencies, 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 should be quick, low-cost, and seamless. Layer-3s aren’t an instructional 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 presently doable on Layer-1s and Layer-2s—akin to enhanced ZK capabilities.
Essentially, Layer-3s tackle 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 selecting Layer-2s as a substitute 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 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 principle to follow.
Not Everybody Is a Fan
Critics argue a number of factors towards Layer-3s: many consider Layer-2 options haven’t reached full maturity but, and making Layer-3s is untimely. Some argue Layer-3s add complexity. However nice know-how is about making complexity invisible to customers—similar to the web did. Some view Layer-3s as redundant, arguing their objectives may very well 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 quicker, cheaper transactions, may nonetheless fall brief.
In some instances, a Layer-3 can summary prices even additional, guaranteeing near-zero gasoline charges. This price abstraction is significant. Blockchain adoption requires transactions which are practically free to the tip 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 purposes that wouldn’t be economically viable on higher-fee networks, and liquidity flows extra freely when not constrained by transaction prices. All the 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 have to bootstrap their very own safety, appeal to customers from scratch, and construct a completely new infrastructure. Many “Ethereum killers” like Cardano, Fantom, or Tezos have found how tough this journey may be.
Layer-3s supply another path the place chains can stay related to established ecosystems whereas offering higher customization choices: that is the place their true potential lies. Software-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 purposes. They’ll 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 tip customers.
A Pathway to Abstraction
Individuals might declare that Layer-3s make web3 too difficult, however there’s a great likelihood that it may resolve its personal downside. The complexity will likely be invisible to finish customers if carried out appropriately.
Fashionable dApps can summary away the underlying layers by sensible pockets designs and intuitive interfaces. Customers needn’t know which layer they’re transacting on any greater than web customers want to know TCP/IP protocols. They merely expertise quicker, cheaper transactions, and higher merchandise.
This pure evolution in blockchain structure is a optimistic 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 convey us nearer to a blockchain world that ‘simply works’—seamless, quick, and cost-effective. And that’s how crypto wins.
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