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CEO of Polygon, Marc Boiron, generated controversy by arguing that layer-3 networks are not essential for Ethereum scaling and can devalue the mainnet.
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His comments initiated a discussion about the significance and role of layer-3 networks within the cryptocurrency ecosystem.
In a statement on April 1, Boiron emphasized that Polygon Labs, an Ethereum layer-2 scaling network, does not focus on layer-3s as they are unnecessary for the scalability of existing networks. He claimed that layer-3s primarily divert value from Ethereum to the layer-2 networks they are based on.
Responses to Boiron’s Claims
Boiron faced opposition to his statements. One individual opposed his views by highlighting that layer-2 networks on Ethereum do contribute value to the overall network. Boiron partly agreed but added a condition.
He argued that the value of layer-2 networks should not be equated with the value of Ethereum. He suggested that if all layer-3s funneled into one layer-2, Ethereum's value would diminish, posing a security risk.
Boiron clarified that Polygon does not focus on other networks' activities, including constructing layer-3 networks on any platform, even their own. However, he stressed that their goal is not to monopolize all value on Polygon networks at Ethereum's expense.
Boiron reaffirmed that Polygon's objective was to scale Ethereum when no one else was pursuing it, using EVM parallelization and privacy. He maintained that layer-3 networks do not align with this goal.
Layer-3 protocols are developed on layer-2 networks to host application-specific DApps. They provide solutions for scaling, performance, interoperability, customization, and costs. Notable players in the layer-3 ecosystem include Orbs, Xai, zkSync Hyperchains, and Degen Chain on Arbitrum Orbit. However, the sector remains relatively niche, with CoinGecko listing only four layer-3 tokens.
Peter Haymond from Offchain Labs argued that layer-3 networks offer advantages that do not deplete Ethereum's value. These benefits include the low cost of native bridging from layer-2, inexpensive on-chain verifications, custom gas tokens, and specialized state transition functions.
Patrick McCorry of the Arbitrum Foundation expressed surprise at Boiron's standpoint, affirming that layer-3 networks offer substantial benefits. They enable layer-2 networks to potentially evolve into settlement layers and rely on Ethereum for global ordering and settlement verification.
In a separate post, Helus Labs CEO Mert Mumtaz echoed Boiron's sentiments stating that layer-3s essentially act as centralized servers settling on other centralized servers (layer-2s) governed by multisigs.
Ethereum co-founder Vitalik Buterin initiated the layer-3 debate by suggesting that these networks should serve unique functionalities different from layer-2s to be valuable in scaling operations. He argued that a third layer in blockchain technology only makes sense if it delivers distinct capabilities from layer-2 networks.
