Ethereum (ETH) processes an average of 15 transactions per second at the time of writing. To scale up that number, several layer-2 devised solutions. These are protocols built as a second layer on Ethereum. Ethereum founder Vitalik Buterin expects layer-3 solutions to take on a completely different function.
What are layer-3 solutions?
Buterin shares his vision on layer-3 solutions in a blog post of September 17, in which he describes three applications for this development. The Ethereum co-founder says a third layer on the blockchain only makes sense if it enables new features.
“A third layer that focuses on scaling the blockchain in the same way as the second layer generally doesn’t work well.”
According to Buterin. The second tier of Ethereum uses Zero-Knowledge (ZK) Rollup technology, something Ethereum’s third tier should definitely not do.
“But a third-tier architecture that serves other purposes can work,” Buterin continues. One of the applications he envisions is “custom functionality”, referring to privacy applications.
Another application Buterin sees is “specialist scaling”, where specific applications, which do not use the Ethereum Virtual Machine for their calculations, can scale in a more simple way.
Finally, Buterin indicates that companies that want to use the Ethereum blockchain can also work through a third layer. These are often projects that do not have to be completely decentralized, so it is sufficient to park some data on the Ethereum blockchain once in a while.
Bitvavo giveaway
Bitvavo is going to surprise some of our readers with tickets for the Nations league match Netherlands – Belgium on Sunday 25 September! Not only will tickets be given away, other Orange prizes will also be raffled among loyal readers.
Do you see attending the match Netherlands 🇳🇱 – Belgium 🇧🇪 be at someone else’s expense, then sign up below with your own name and your e-mail address. With a bit of luck you will be in the stadium in just over two weeks!
Do you have an account with Bitvavo? Please enter this email address
Be quick, because the winners will be sold out Wednesday September 21 contacted!
Scalability Advantages for Ethereum
Despite Vitalik Buterin pointing out that Ethereum’s third tier is basically not focused on scalability, it does deliver some benefits in this area. One argument for the three-layer model compared to the two-layer model is that it is possible to accommodate a complete sub-ecosystem in an existing rollup.
This is visualized in the image above. Where specialized applications and privacy solutions are linked to the first layer in a two-layer system, this can be arranged differently in a three-layer system. There it is possible to accommodate those applications in an existing rollup.
Buterin’s statements come after Starkware’s new ‘recursive validity proofs’, which apparently have the potential to scale Ethereum infinitely. “With recursive rollups and proofs, in theory we can scale indefinitely,” Declan Fox recently reported in recent Ethereum news.
