With the of entirety of the Ethereum Merge, founder Vitalik Buterin has became his consideration to different issues that might assist beef up the community. Ethereum Layer 2 protocols have been giant trade again within the bull marketplace of 2021, or even now, they proceed to collect strengthen from community customers who proceed to make use of those roll-ups. Now, Buterin has pointed to the potential for Layer 3 protocols at the community. Right here’s what he expects them to do.

Ethereum Layer 3 Protocols

In a put up, Ethereum founder Vitalik Buterin delves into the speculation of Layer 3 protocols which have been circling the gap now. In the beginning, the speculation began that with the capability of the present Layer 2 protocols, it used to be conceivable to construct on them to offer much more scalability. Buterin refutes this in his put up: “Sadly, such easy conceptions of layer 3s infrequently reasonably determine that simply.” So what then could make a a hit Layer 3 protocol?

The bottleneck comes from the knowledge that must be saved at the blockchain as transactions are processed. Layer 2s already do a just right activity of squeezing the knowledge had to retailer transactions on-chain however don’t do away with the wish to retailer information on-chain. Given this, as soon as the knowledge is already compressed as soon as to scale back its dimension, it’s unattainable to compress it once more. Which means that it isn’t conceivable to get extra scaling by means of simply construction a Layer 3 rollup onto a Layer 2 roll-up.

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The herbal conclusion for a way Ethereum Layer 3 protocols would then paintings could be that they might have other functionalities from the already current Layer 2 protocols. So, the place an L2 could be interested by scaling, an L3 would cross in opposition to extra specialised capability like privateness. This discards the speculation of short of to ‘beef up’ upon the compression of Layer 2 and as an alternative provides L3s one thing new to paintings and concentrate on. 

This custom designed capability can cross in opposition to the rest, actually. It will probably cross in opposition to custom designed scaling the place programs may use compressed information for particular programs consistent with a specific information layout, doing computations the use of one thing instead of EVMs, and so forth. Buterin additionally notes that the place Layer 2 answers are for trestles scaling, Layer 3s can also be for “weakly-trusted scaling (validiums).”

Layer 3s would additionally most likely supply higher operations for cross-chain transactions because the “three-layer type lets in a whole sub-ecosystem to exist inside of a unmarried rollup, which permits cross-domain operations inside of that ecosystem to occur very cost effectively, while not having to move in the course of the dear layer 1.”

The Ethereum Layer 3 protocols are nonetheless very a lot an idea concept at this time, however the Ethereum founder issues to a framework that used to be proposed by means of Starkware as person who carries a large number of promise. This extra refined framework is going past the college of considered simply stacking some other layer atop a Layer 2 and anticipating it to extend the compression. Buterin issues out that it is a just right concept “if it’s finished in the proper method.”

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