Vitalik Buterin shows why layer 3 is not the best solution

As blockchain technology advances, the appearance of Layer 3 (L3) has sparked widespread discussion among industry experts and developers. Vitalik Buterin, the founder of Ethereum, recently joined the ongoing discussion.

Vitalik Buterin “What does layer 3 mean?” He took to X (Twitter) to share an old article titled: He originally wrote the article in It's in 2022. While the article itself is not new, Buterin's decision to repost it has sparked discussions about L3's interests in the blockchain and crypto industry.

Buterin thinks L3 could be a good idea if done “in the right way”.

Vitalik Buterin explains that as an important element in blockchain innovation, the L3 – scale development solutions to achieve exponential balance appeal in theory – is convincing, practical implementation faces technical obstacles. These include limitations related to data availability and emergency backup bandwidth limitations.

His insights draw from years of research into blockchain scalability, including seminal works such as his 2015 breakthrough paper and the Plasma framework.

In contrast to simple stack approaches, new L3 frameworks, exemplified by Starkware's proposals, suggest assigning distinct roles to L2 and L3. Starkware, known for its cryptographic expertise, suggests that L3 could focus on custom functions such as privacy or app-specific improvements, as opposed to simply emphasizing scalability.

Read more: A Beginner's Guide to Layer-2 Scaling Solutions

Although Vitalik Buterin acknowledged the complexity of the new L3 framework proposed by Starkware, he conveyed that it could be a good idea if done “in the right way.”

“I suspect that more sophisticated (and simpler) architectures like those described in this article will play a significant role as the Layer 2 scrounging ecosystem matures,” Buterin wrote.

Limitations of L1 and L2

The emergence of L3 has led to discussions as it is considered a critical component in the blockchain technology infrastructure. Many believe in blockchain's ability to improve the efficiency and effectiveness of networks and facilitate the creation of new decentralized applications (dapps). The importance of L3 in the blockchain ecosystem cannot be overstated, and the industry will closely monitor its development.

L3 technologies are envisioned as a ground-breaking step beyond existing Layer 1 (L1) and Layer 2 (L2) solutions. L1, the blockchain base layer, like Ethereum, provides basic security and decentralization. L2, on the other hand, works on top of L1 to increase scalability. Meanwhile, L3 aims for greater scalability by tying blockchain networks to L2 for security, which can provide massive scalability benefits.

Among the emerging examples of L3 projects, Starknet and Arbitrum Orbit stand out. StarkNet proposes to use Validium for data availability for cost-critical applications. Arbitrum Orbit likewise aims to provide customized sizing solutions that can best serve specific application needs. These initiatives demonstrate a no-nonsense approach to L3 development, recognizing the diversity of requirements for blockchain applications.

Read more: Deep Dive into Starkware, Starknet and StarkX

Doubt around the conversation

However, some people are critical of the discourse around L3. Polygon Labs CEO Mark Boiron disputes the importance of L3. He argued that L3 from the Ethereum ecosystem could be sold at the same price as the L2 they are building. His skepticism reflects a broader debate in the crypto community about the strategic value and implications of L3 technologies.

I'll say the silent part out loud: L3s exist to extract value from Ethereum and the L2s that the L3s are built on. You don't need L3s to measure. And that's why Polygon Labs doesn't work on L3s,” Boyron said.

Despite differing opinions, there is a lot of discussion about L3 and it may be one of the most exciting innovations in the cryptocurrency industry. L3 can provide customized functions and scalable solutions, which promises to change the future of blockchain technology. However, as L3 is still in its early stages, its effectiveness and impact have yet to be fully realized.