Vitalik Buterin, the Ethereum wiz, dropped some truth bombs about Layer 3 technology, debunking some myths along the way. He kicked things off by stating flat out that Layer 3s aren’t the magic fix for boosting throughput we might’ve hoped for. Sure, they cut some costs around batch publishing and moving money in and out, […]

Vitalik Buterin, the Ethereum wiz, dropped some truth bombs about Layer 3 technology, debunking some myths along the way. He kicked things off by stating flat out that Layer 3s aren’t the magic fix for boosting throughput we might’ve hoped for. Sure, they cut some costs around batch publishing and moving money in and out, but that’s about it.

With a tip of the hat to Georgios Konstantopoulos, Karl Floersch, and the Starkware team, Vitalik revisits his famous article around Layer 3s with a few adjustments. For true blockchain believers like myself, the dream was simple. Right? If Layer 2s can give our transactions a leg up by using Layer 1 for security, why not slap on a Layer 3 for even more juice?

Layer 3: Beyond the Hype

This is where Vitalik throws a cold one on our hopes.

Sure the idea sounds cool. Like, if a trick works once, why not do it again for double the fun, right? Wrong.

Turns out, the blockchain doesn’t play nice with that kind of logic. There are these annoying little things called limits that determine how much data you can actually shove around and emergency safety nets that just don’t scale the way we want, guys.

To make his point even clearer, Vitalik points to Starkware’s smarter take on Layer 3s. They’re not about blindly stacking layers but giving each one a job to do. Think of it like having a builder for the structure and a different decorator for the interior. Each one has its purpose.

But what’s the big deal with stacking rollups, you ask? Vitalik’s got you covered.

The genius told us that yeah, rollups are cool because they let a few people do the heavy lifting on transactions, making sure everything checks out. And okay this works great for crunching numbers, but when it comes to data, the stuff transactions are made of, you are so going to hit a wall. You can squeeze data once to make it fit better, but that’s your lot. Trying to squeeze it again just doesn’t work.

So, Starkware pops up with this fancy diagram showing how Layer 3s might make sense. They talk about StarkNet for general apps, specialized systems for better performance, and even privacy-focused setups. Vitalik nods along, saying there’s some merit here, especially when it comes to making specific tasks run smoother or keeping some transactions under wraps.

Verrrry interesting.

The Real Skinny on Layer 3s

But then here’s where it gets real. Moving money around within these layered worlds could get easier and cheaper.

Vitalik lays it out like this:- You don’t have to go all the way back to the base layer to shuffle your digital dollars. You can just hop from one layer to another without paying the Layer 1 toll booth. I like to think of this like having a fast pass in your favorite amusement park.

Yet, like with almost everything in the world, there’s a catch, especially with these so-called optimistic rollups. You might have to wait a bit before your transactions clear, thanks to something called the fraud proof window.

But wait, there’s hope on the horizon with ZK rollups.

They promise to cut down on the wait time, making things snappier while still keeping costs low. And if we’re talking about costs, Vitalik has already done the math. He shows how Layer 3s can slash transaction costs, making a strong case for why they’re worth a look. So, check it out below:-

Vitalik then urges us to look at the bigger picture, talking about a world where proofs of transactions can be bundled up neatly. This could mean big savings and a more streamlined process, courtesy of some smart contract wizardry.

Closing out, the legendary creator of Ethereum ponders what exactly even counts as a “layer” in this blockchain lasagna we’re cooking up. It’s a bit of a mind-bender, with some layers looking more like smart contract gymnastics than traditional blockchain layers.

The takeaway I got from everything Vitalik said is that it is all up for debate, but what matters most is finding the most sensible and secure way to stack these digital building blocks.