What Would Ethereum Layer 3 Look Like? Vitalik Buterin Has Some Concepts

Key Takeaways

  • Ethereum creator Vitalik Buterin has printed a weblog submit outlining how Layer 3 scaling options might work.
  • He said that Layer 3 options can not encompass stacked rollups, as this may not lead to environment friendly information compression.
  • Buterin outlined two potentialities: Layer 3 platforms with specialised capabilities and batch verifier contracts.

Ethereum creator Vitalik Buterin believes that stacking rollups is not going to successfully scale Ethereum—however he nonetheless has some concepts about the way forward for Layer 3 scaling.

Buterin Questions Rollup Stacking

Layer 2 platforms are nonetheless of their infancy, however Vitalik Buterin is already eager about Layer 3 scaling.

In a weblog submit titled “What sort of layer 3s make sense?”, Buterin has mentioned methods during which Layer 3 scaling options might assist Ethereum course of transactions extra effectively.

Ethereum’s mainnet presently has a throughput of about 15 transactions per second. In periods of excessive exercise, customers face community congestion and very excessive gasoline costs as their transactions can not match into obtainable block area. In November 2021, customers paid as a lot as $62.11 for a token swap—an operation that presently prices about $1.36.

Layer 2 scaling options known as “rollups” have been designed to alleviate this drawback. Rollups outsource a transaction’s computational information to a different chain, then submit an simply verifiable cryptographic transaction proof to Ethereum’s mainnet. This enables transactions to be bundled collectively, saving a major quantity of block area.

Buterin beforehand said that rollups might assist Ethereum attain a throughput of 100,000 transactions per second. Arbitrum, Optimism, StarkNet, and zkSync are all examples of rollups.

Nonetheless, rollups have limitations. Buterin stated in his newest weblog submit that rollups of their present type can not merely be stacked on prime of each other due to information compression points.

He argued that “information will be compressed as soon as, but it surely can’t be compressed once more.” If a second compressor gives a bonus, the logic of a second compressor often will be put into the primary compressor, he stated.

Layer 3 Gives Options

As a substitute of stacking rollups, Buterin has steered assigning totally different functions to Layer 2 and its potential Layer 3 networks.

On this case, Layer 2 could be used for scaling. In the meantime, Layer 3 would help different capabilities similar to privacy-focused chains, non-EVM platforms, personalized scaling options for particular functions, or validiums (that are one other sort of rollup).

Buterin additionally steered that Layer 3 methods might be created by modifying the way in which that rollups presently perform. Some rollups, known as ZK-Rollups have to confirm their state root proofs (a sort of cryptographic key) themselves.

As a substitute, Buterin argues for a brand new method involving a “batch verifier contract” that makes a speciality of verifying these proofs. This may considerably deliver down gasoline costs for these scaling options with no need to ascertain a full EVM system as a center layer. In impact, ZK-Rollups would turn into Layer 3; there could be no have to construct Layer 3 on prime of them.

Buterin additionally stated that, no matter how Layer 3 options are constructed, they’ll permit sub-ecosystems to evolve inside Layer 2s.

Certainly, cross-domain operations might occur with out essentially having to cross by means of Ethereum’s mainnet—which suggests transactions would turn into less expensive. That would definitely be excellent news for Ethereum customers.

Disclaimer: On the time of writing, the creator of this piece owned BTC, ETH, and a number of other different cryptocurrencies.

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