my take on the STATE OF ETHEREUM L2s and where things are headed:
while it may be hard to grasp, chain minimalism doesn't make sense in a L2 world. we will actually see HUNDREDS or THOUSANDS of L2s, especially as bridges and wallets begin to abstract away complexity for end users
the INCENTIVES to build as an Ethereum L2 are:
- being able to tap directly into ETH liquidity (worth +$400 bn)
- having access to relatively cheaper security from Ethereum L1 (rather than paying for their own consensus as a L1 which can cost billions per year)
- access to strong development tooling for EVM, and soon any VM
- ability to still create a native token (if desired) which could be used to decentralize a sequencer, share in network fees, and other uses
- OR ability to avoid creating a native token if it is not needed/desired
what TYPES of Ethereum L2s can we expect?
1) GENERAL PURPOSE L2s (Base, Arbitrum) - used for a broad array of purposes, like a high-throughput L1 would be used, but benefit from
2) NICHE-SPECIFIC L2s (Blast, Immutable X) - focus on a specific/thematic set of use cases which attract others in that use case set, where there is potential value in multiple applications sharing state and an ecosystem
3) APP-CHAIN L2s (coming soon) - will focus on tailored use cases for ONE application, community, or corporation/institution. this will be a vector by which many uses go "onchain" and the UX can be tailored such that users don't even realize they are using a blockchain from a slick phone app. and because there is no competition for state, they don't really have to worry about surges in gas prices due to activity elsewhere on their network
while it may be hard to grasp, chain minimalism doesn't make sense in a L2 world. we will actually see HUNDREDS or THOUSANDS of L2s, especially as bridges and wallets begin to abstract away complexity for end users
the INCENTIVES to build as an Ethereum L2 are:
- being able to tap directly into ETH liquidity (worth +$400 bn)
- having access to relatively cheaper security from Ethereum L1 (rather than paying for their own consensus as a L1 which can cost billions per year)
- access to strong development tooling for EVM, and soon any VM
- ability to still create a native token (if desired) which could be used to decentralize a sequencer, share in network fees, and other uses
- OR ability to avoid creating a native token if it is not needed/desired
what TYPES of Ethereum L2s can we expect?
1) GENERAL PURPOSE L2s (Base, Arbitrum) - used for a broad array of purposes, like a high-throughput L1 would be used, but benefit from
2) NICHE-SPECIFIC L2s (Blast, Immutable X) - focus on a specific/thematic set of use cases which attract others in that use case set, where there is potential value in multiple applications sharing state and an ecosystem
3) APP-CHAIN L2s (coming soon) - will focus on tailored use cases for ONE application, community, or corporation/institution. this will be a vector by which many uses go "onchain" and the UX can be tailored such that users don't even realize they are using a blockchain from a slick phone app. and because there is no competition for state, they don't really have to worry about surges in gas prices due to activity elsewhere on their network
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