Polygon Labs CEO Criticizes Layer-3 Networks, Highlights Risks

Marc Boiron, CEO of Polygon Labs, strongly disagrees with the use of Layer-3 networks in the Ethereum ecosystem, as they may siphon off value and security, potentially jeopardizing the network’s overall security.

Criticism arises as trading meme coins experiences rapid expansion on Degen, a Layers-3 platform operating over Ethereum‘s base.

Not A Fan Of Layer-3 Networks 

Boiron spoke out against Layer-3 networks, warning of their possible threats to Ethereum’s security. This statement was made following the recent launch of a new Layer-3 network, Syndicate’s Network on Arbitrum’s Orbit, which has attracted both interest and controversy among users. The main audience for this network is users of Farcaster’s Web3 platform. Initial investors in this platform have experienced substantial returns, with one individual turning an investment of $7000 into over $2 million.

Despite its impressive achievement, Ethereum’s Layer-3 networks have faced criticisms from Boiron. He contends that these networks draw value away from Ethereum’s fundamental layer.

“In plain terms, L3s solely serve to transfer value from Ethereum to the L2s they are built upon. *It’s important to note that you don’t need L3s for scaling.* This is why Polygon Labs focuses on L2 solutions instead.”

Boiron further stated, 

If every L3 (a term presumably referring to a specific level or group in the Ethereum ecosystem) were to converge onto a single L2 (another term likely representing a different level or solution within Ethereum), then Ethereum would fail to generate significant value, potentially jeopardizing its security.

Not Everyone Agrees 

Yet, Boiron’s perspectives don’t resonate with everyone, as evident in OxWenMoon’s objection, a renowned figure in the blockchain community. In response to Boiron, OxWenMoon expressed:

“I have my doubts about this situation, but if we assume it’s true, there’s no transfer of value from Ethereum to Layer 2 solutions. Instead, Layer 2 solutions are just an extension of Ethereum’s value.”

Degen Chain’s Staggering Success 

The Degen Chain was introduced as an affordable network for the DEGEN token, with low costs being its main selling point. Now, the DEGEN token has emerged as the preferred choice among Farcaster’s user community. Farcaster is experiencing remarkable growth, and its parent company is aiming for a billion-dollar valuation, which was unheard of before. As a result, some early Degen investors have seen their small initial investments balloon into millions. For instance, one investor saw their $7000 investment grow into an astounding $2 million.

Farcaster’s increased usage signifies a rising curiosity among users towards Layer-3 networks, making it one of the initial Layer-3 chains to gain significant mainstream acceptance. In contrast, Polygon Labs is renowned for various Layer-2 scaling methods such as Polygon and Polygon xkEVM. However, Polygon Labs encountered downtime with its Polygon xkEVM chain but has since restored operations.

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2024-04-01 12:56