As Ethereum continues to cement itself as the leading smart contract blockchain network, an array of layer 2 scaling solutions have emerged to help bring greater capacity, lower costs, and increased security to the ecosystem. According to Ethereum co-founder Vitalik Buterin, the layer 2 landscape is likely to remain diverse and heterogeneous going forward.
In a recent blog post titled Different Types of Layer 2s, Buterin provided an overview of the current state of Ethereum layer 2 solutions and why he expects continued variation in technical approaches:
According to Buterin, there are several key reasons driving continued innovation and heterogeneity across layer 2 solutions:
When assessing the tradeoffs between solutions offering varying degrees of decentralization and Ethereum interoperability, Buterin highlights two key considerations:
Buterin notes two primary dimensions for evaluating a layer 2s connectedness to Ethereum:
For both dimensions, projects sit on a spectrum, ranging from loose integration to tight interleaving with Ethereum. There are merits to different approaches depending on the use case:
In many cases, starting with something looser today and moving to a tighter coupling over the next decade as technology improves may well be optimal.
The layer 2 landscape is primed to continue diversifying as Ethereum gears up for native scaling improvements in sharding and rollup interoperability.
While rollups are likely to serve as long-term solutions for decentralized finance and other security-critical applications, alternative layer 2 technologies will also proliferate in the coming years to meet the needs of gaming, social media, the Internet of Things, and more.
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 5 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.
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