Are Layer 2s Good for Ethereum, or Are They “Extractive?”
Ethereum's layer 2 scaling solutions have been touted as a game-changer for the platform's scalability and usability. However, some experts are questioning whether these solutions are truly benefiting Ethereum, or if they're actually working against its interests.
The Problem with Layer 2s
Layer 2 solutions like Optimism, Arbitrum One, and Base have been gaining popularity in recent months. They offer faster transaction speeds and lower fees than the mainnet, but at what cost?
- Centralized Sequencers: These layer 2s rely on centralized sequencers to process transactions. This creates a single point of failure, making the entire system vulnerable to attacks.
- Risk of Leakage: If Ethereum imposes a tax or surcharge on its layer 2s, it could incentivize users to switch to competing layer 1s outside the Ethereum ecosystem.
- Philosophical Issues: Some experts argue that laying a surcharge on layer 2s could create philosophical issues within the Ethereum community. It could be seen as unfair or punitive to the developers and users who have invested time and resources into these solutions.
The Solution: Based Rollups
Some experts believe that the solution to these problems lies in implementing based rollups, which would process transactions on the mainnet rather than layer 2s. This approach could provide better security and decentralization while still offering faster transaction speeds.
- Decentralized Sequencers: Based rollups would use decentralized sequencers to process transactions, reducing the risk of a single point of failure.
- Increased Security: By processing transactions on the mainnet, based rollups could provide better security and resistance to attacks.
- Improved Scalability: Based rollups could offer faster transaction speeds and lower fees than current layer 2 solutions.
The Way Forward
Ethereum is still well-positioned to provide the infrastructure for the "network of networks" – a smoothly interacting network of multitudinous private and public blockchains. However, it's clear that the platform needs to address its scaling and usability issues if it wants to remain relevant in the long term.
Conclusion
The debate over layer 2s and their impact on Ethereum is complex and multifaceted. While these solutions offer faster transaction speeds and lower fees, they also create risks and philosophical issues that need to be addressed. Based rollups could provide a solution to these problems, but it will require careful consideration and collaboration within the Ethereum community.
Recommendations
- Improve Decentralization: Ethereum should prioritize decentralization in its layer 2 solutions. This means using decentralized sequencers and reducing reliance on centralized nodes.
- Increase Transparency: The Ethereum community should increase transparency around the risks and benefits of layer 2 solutions. This will help users make informed decisions about which platforms to use.
- Invest in Research: Ethereum should invest more in research into scalable and decentralized infrastructure. This could include exploring new consensus algorithms, scalability solutions, and security protocols.
Acknowledgments
This article is a collaboration between several experts in the Ethereum community. The opinions expressed here are their own and do not necessarily reflect the views of the authors or the Ethereum Foundation.