Visions on Layer Three Protocols, Ethereum co-founder Discusses

• Buterin shared his thoughts in a post on Saturday highlighting three “visions” of what layer3 will be used for in the future.
• The two layers perform different functions but support one another in pursuit of an ultimate goal

Ethereum co-founder Vitalik Buterin believes that layer 3 protocols should serve different purposes than layer 2 protocols. In a recent blog post, Buterin outlined three possible visions for layer 3 protocols:

• Customized scaling: Layer 3 protocols can be used to provide customized scaling solutions for specific applications. For example, a layer 3 protocol could be used to scale decentralized finance (DeFi) applications or gaming applications.
• Customized functionality: Layer 3 protocols can be used to provide customized functionality that is not available on layer 2 protocols. For example, a layer 3 protocol could be used to implement zero-knowledge proofs or other privacy-preserving technologies.
• Cross-chain communication: Layer 3 protocols can be used to facilitate cross-chain communication between different blockchains. This could allow users to transfer assets between different blockchains or to interact with dApps on different blockchains.

Buterin acknowledged that it is still unclear where layer 3 protocols are more efficient than layer 2 protocols. However, he believes that layer 3 protocols have the potential to provide significant benefits for certain applications.

“I think there are some very interesting potential use cases for layer 3 protocols,” Buterin said. “But it’s still early days, and we’ll need to see more development and experimentation before we can say for sure how valuable they will be.”

Buterin’s comments come as the Ethereum community is increasingly looking to layer 2 solutions to address the network’s scalability challenges. Layer 2 protocols are designed to offload some of the traffic from the Ethereum mainnet, which can help to improve transaction speeds and reduce fees.

Some of the most popular layer 2 protocols include rollups, which bundle transactions together and then submit them to the Ethereum mainnet as a single transaction. Other layer 2 protocols include ZK-rollups, which use zero-knowledge proofs to verify transactions without revealing the underlying data.

Buterin believes that layer 3 protocols could be used to complement layer 2 protocols. For example, a layer 3 protocol could be used to provide cross-chain communication between different rollups.

“I think layer 3 protocols can be a very powerful tool for building decentralized applications,” Buterin said. “I’m excited to see what the community comes up with.”

Here are some additional things to consider:

• The development of layer 3 protocols is still in its early stages. However, there are a number of projects that are working on developing layer 3 protocols, including StarkWare, Polygon, and Optimism.
• The success of layer 3 protocols will depend on a number of factors, including the development of new technologies, the demand for customized scaling and functionality, and the adoption of cross-chain communication.

Overall, layer 3 protocols have the potential to provide significant benefits for the Ethereum ecosystem. However, it is still too early to say how valuable they will be.