The cryptocurrency and web3 landscape is witnessing a significant shift with an increasing number of projects launching their own Layer 2 (L2) chains. This trend is driven by the decreasing cost and complexity of launching a chain, leading to exponential growth in the number of chains. Entities like LayerZero Labs and Emblem Vault are gaining attention for their roles in facilitating this transition. The proliferation of L2s is seen as a way to enhance user experience and customization, with Ethereum's L2s being compared to the iPhone for their consumer-facing optimization. Coinbase's L2 taps into Ethereum's strong developer ecosystem and 100m+ end-user distribution. However, this fragmentation is also raising concerns about interoperability and the need for common rollup standards. Solana is highlighted as a competitor, with some arguing that its monolithic approach may offer a superior user experience compared to the fragmented ecosystem of Ethereum's L2s. The overall sentiment suggests that the market is moving towards a modular 'app chain' paradigm, where breakout applications may eventually launch their own L2s or even L1s.
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…
the modular “app chain” is an undeniable phenomenon Ethereum L2s + tooling + ETH liquidity will make this a reality at massive scale during THIS crypto cycle the benefits of your own chain & ecosystem without running your own consensus
Yes, L2s are commoditized. Launching an Optimistic roll-up overnight is easy, but building a robust chain and thriving ecosystem is a vastly different challenge. There’s a reason companies build on top of tech stacks and focus on their core product instead of the backend. It's… https://t.co/R1waHVjXS2
The VERY smart move Base did was to build an L2 on Ethereum. This taps into 1/ the strongest dev ecosystem in crypto … while making use of … 2/ CB’s 100m+ end-user distribution. Brand-wise for developers, it’s highly “Ethereum-aligned”. Much more so than BNB Chain for… https://t.co/uAx2jYkuRB
First paradigm of smart contract platforms: “Build it and they will come” Focus on developers, build infrastructure bottom-up. Ethereum, Solana, plus lots of dead L1s. — Second paradigm: “They’re already here, let’s build” Focus on existing end users, build infrastructure… https://t.co/7bDjWGLFUC
The network effects that stem from the proliferation of rollup standards are highly under rated. I’ve said this before but L2s are incentivized to adopt common standards for interop, proving, etc even with their competitors, unlike what we see with L1s. Eg) eth, avax, bsc are…
The network effects that stem from the proliferation of rollup standards are highly under rated. I’ve said this before but L2s are incentivized to adopt common standards for interop, proving, etc even with their competitors unlike what we see with L1s. Eg) eth, avax, bsc are…
“Any app that achieves breakout success will most likely launch their own L2 and potentially eventually their own L1” Santi 🤝 Modular appchain thesis believer https://t.co/wJqPdZ0lZK
Finally someone says it out loud. The incentive to build your own L2 is the same as building a L1. And we saw a lot of that prior cycles…now we’re seeing the same move with L2s. Does it end there? Unlikely imo What stops breakout apps from launching their L2 and, eventually,… https://t.co/ayGL7feR64
It's that 5% that makes each L2 unique and gets users hyped. We're gonna see more chains than we can even imagine. The goal should be to give everyone easy access to all of them without friction. https://t.co/L7JwWplItD
Pretty sure modular has won Even Solana is expanding with multiple L2's, rollups etc. Their builders have already started to change the narrative. 6-12 months ago it was cool to shit on ETH because Solana's "monolithic thesis" was superior UX, but it always hits a bottleneck
At this point it’s a meme to build your own L2/L3. As our community knows, we always try to lead and not follow. That’s why we’re building more than 1 chain.
When anyone can spin up an L2 with the same ease as a memecoin today, the only question will be how the value moves between chains. That's where @EmblemVault shines 🤌 https://t.co/7e5GdQ2bpQ
"L2s are stupid because they're all the same tech - it's redundant I promise. So we're going to introduce a new L2 that's differentiator is not the tech" Bro, if you're building something that isn't dependent on the tech then why not build atop an existing L2? My… https://t.co/z0u1IYwJLQ
If Ethereum is the BlackBerry, its L2s turn it into the iPhone. Consumer-facing, optimized, all-in-one smart wallets by Coinbase, for example. Powered by Ethereum. Solana is like holding a T-Mobile Sidekick. https://t.co/nTJfQ7HWDv
I think the big Solana advantage over Ethereum is the most obvious. All these L2 and EVM chains simply fragment the ecosystem. If “consumer crypto” indeed becomes the meta it seems very obvious that these ordinary and already timid consumers won’t want to have to bridge anything.
Lot of commentary recently about how there’s too many chains being launched But the reality is, as the cost and complexity of launching a chain continues to drop toward zero, the number of chains will grow exponentially Interoperability and abstraction is the obvious solution https://t.co/659vxQcrZQ
The recent announcements of lots of projects launching their own chains is also why I'm bullish on things like @LayerZero_Labs -- it should be pretty clear by now that everyone wants their own app chain to be able to max customize the experience. The question that remains is:…
because the market spoke in terms of what gets the valuation premium in crypto & web3. makes sense for leading web3 cos to create consumer-oriented L2s which can brand themselves as such and attract the right kind of devs & userbase. play into market forces. https://t.co/bN7ByfFXz6