2

Millions of VC funding dollars are going into Layer-2 solutions like Optimism, Arbitrum and Polygon to allow users to side-step mainnet Layer-1 and process transactions at a thousandth of the cost and speed just because Ethereum does not yet scale according to demand.

What if Vitalik pulls Eth 2.0 off and Layer-1 mainnet finally does scale with sharding, Purge, and the whole nine yards? Will all of these roll-ups and Layer-2 solutions that provide a temporary cosmetic fix just fall off the face of the earth and become obsolete, or would they still be thousandths of the cost of the new light-speed Eth 2.0?

2 Answers 2

1

Now this is just my speculation, but I don't think L2s will disappear. There is no way to get all three components right of the blockchain trilemma: security, decentralization and scalability. Ethereum is pretty good currently on the two first, but the last one is lacking.

To scale Ethereum you either have to go to L2 or try to improve L1 somehow. Yes, there are lots of plans on how to make L1 better (such as sharding), but I don't think any one them can get close to the required levels.

I believe L1 will mostly remain as a good source of security and decentralization. Different L2s then add more various features - one of them being scalability.

L2s don't offer just scalability, though. They can offer also stuff like privacy (for example Aztec) or aggregate transactions (for scalability purposes or something else).

P.S. I strongly disagree with the terminology of "what if Vitalik....". There are hundreds or thousands of people working on making Ethereum better. Furthemore, the term "Eth 2.0" is obsolete.

2
  • Aztec claims to make transactions not only private but also cheaper. If I send 1 eth on mainnet, all I pay is one gas txn to send it. If I use Aztec's privacy layer, however, I pay the gas txn to transfer the 1 eth to Aztec network, and then pay a 2nd gas txn to Aztec's smart contract to send the 1 eth to the real address of the recipient. That's 2 gas txns more than sending on L1 mainnet! How can that possibly be cheaper?
    – user610620
    Dec 9, 2022 at 5:24
  • It's cheaper if you transaction inside Aztec or transaction from Aztec to Aztec Bridge supported L1 protocols. Rollups are used. Obviously you have to pay full price to send to Aztec from L1. Please post a new question (or search for existing answers) if you have further questions. Dec 9, 2022 at 5:36
1

Here is my theory:

If Ethereum gas fees become as cheap as ie., today's Polygon:

New Dapp devs will turn a blind eye on L2 and just build new systems in Ethereum, the reason is simple; Market Capitalization.. Ethereum market is way bigger than any L2;

With this, transaction volume might get low on L2s, so gas fees become so small that they become negligible, therefore making it a near free blockchain and non very profitable to mine chain and this might bring another issue, miners will likely stop mining these chains so only Dapp developers might have to run their own validators||miners to support their ecosystem...

So my forecast is that most of L2s will slowly die until it all Centralize into a few bigger chains.. Like slowly descending towards Negentropy

2
  • Does Vitalik's purge urge roadmap include an option for private transactions on Layer-1? Or will private transactions always be a Layer-2 advantage
    – user610620
    Dec 9, 2022 at 4:43
  • that is a good question haha maybe we can find something here ethereum-magicians.org
    – Casareafer
    Dec 9, 2022 at 4:54

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.