With a handful of pioneers like Arbitrum and Optimism leading the way a few years ago, there has been a rapid increase in layer-2 networks built on top of Ethereum. These networks offer a cheaper and faster alternative for executing transactions. Currently, the tracking website L2Beat lists 73 active layer-2 projects, 20 layer-3 projects, 81 upcoming projects, and 12 archived projects.
This proliferation of layer-2 networks sets the stage for the next big challenge in the blockchain space, according to Alex Gluchowski, CEO of Matter Labs, the primary developer behind the ZKsync layer-2 protocol. Gluchowski believes that tackling fragmentation is crucial for the industry’s advancement.
Many layer-2 chains face challenges in communicating with each other, leading to the development of interoperability solutions. Matter Labs recently released its Elastic Chain in June to address this issue. Competitors like Polygon and Optimism have also introduced their own solutions, such as Polygon’s AggLayer and Optimism’s Interoperability solution.
As the competition intensifies among layer-2 networks utilizing zero-knowledge proofs, the focus will shift to projects offering interoperability solutions. Gluchowski highlighted Optimism’s Superchain and Matter Labs’ Elastic Chain as live implementations of interoperability. However, he expressed skepticism about Optimism’s plans without integrating zero-knowledge proofs into their systems.
The ease of cloning technology and building new networks based on existing tech has led to the proliferation of layer-2 chains in recent years. Developer stacks like OP Stack and Matter Labs’ ZK stack enable users to create customizable layer-2 blockchains using available technology.
High-profile chains like Coinbase’s “Base” and Worldcoin’s “World Chain” have emerged from these developer stacks. Additionally, Layer-1 Cronos has developed its own layer-2 chain, Cronos zkEVM, based on ZKsync technology.
Efforts are now focused on creating a more interconnected network of chains to provide a seamless user experience. Gluchowski emphasized the importance of viewing the abundance of layer-2 chains as beneficial for specific use cases rather than a hindrance.
He suggested the need for application-specific or community-specific layer-2 chains, tailored to regional or industry-specific requirements. By creating distinct chains for different purposes, such as gaming or financial applications, the goal is to streamline transactions and enhance user experience.
For more information: ZKsync Developer’s New ‘Elastic Chain’ Could Compete With Polygon’s AggLayer