Based Post-Capitalism: Layer 2 and 3 Chains as Foundations for New Economies

In the dynamic landscape of blockchain technology, Layer 2 (L2) and Layer 3 (L3) chains exhibit the potential to be not just technical innovations—they could be the bedrock for diverse post-capitalist economies. These layers, built atop existing Layer 1 (L1) blockchain architectures like Ethereum, offer scalability, security, and efficiency, enabling the creation of alternative economic systems that challenge the current capitalist status quo.

By harnessing the power of L2 and L3 chains, communities can foster cultures of solidarity, equity, self-management, and collective direct democracy, creating a future where decentralized governance and economic autonomy are the norm.

The Role of L2 Chains

L2 chains are vital in scaling the underlying L1 blockchains, making them more accessible and usable for everyday transactions. By processing transactions off-chain and then batching them onto the main chain, L2s increase throughput and reduce costs. This scalability is not just a technical achievement; it is potentially a gateway to new forms of economic organization that prioritize community needs over profit maximization.

For instance, L2 chains can facilitate decentralized autonomous organizations (DAOs) that operate on principles of collective decision-making. These DAOs can manage everything from cooperative enterprises to local government functions, ensuring that power is distributed among participants rather than concentrated in the hands of a few.

In such systems, equity is not just an abstract goal but a practical reality, as all members have a stake and a voice in decision-making processes.

Optimistic and zk Rollups

Optimistic rollups and zero-knowledge (zk) rollups, two prominent L2 solutions, each offer unique advantages that can be leveraged to support different post-capitalist models.

Optimistic Rollups assume transactions are valid by default, with a challenge period where fraudulent transactions can be contested. This model aligns well with systems that value transparency and community oversight. In a post-capitalist economy, where collective vigilance and mutual accountability are crucial, optimistic rollups provide a technical framework that mirrors these values.

zk Rollups, on the other hand, uses cryptographic proofs to verify transactions, offering instant finality and enhanced privacy. These are essential for creating economies that prioritize individual autonomy while still operating within a collective framework. The privacy afforded by ZK rollups can protect participants in politically sensitive environments or in communities that require discretion, thus enabling a more inclusive and diverse range of economic activities.

Sequencers in L2s: The Backbone of Transaction Ordering

In L2 networks, sequencers play a critical role by ordering and batching transactions before they are submitted to the L1 blockchain. Acting similarly to validators on L1 chains, sequencers manage the flow of transactions, ensuring that they are processed efficiently and in the correct sequence. The primary responsibilities of sequencers include reducing transaction fees, speeding up processing times, and maintaining the integrity and security of the network.

The Risk of Centralized Sequencers

However, the centralization of sequencers poses significant risks. In many current L2 solutions, a single entity or a small group controls the sequencing process. This centralization creates potential single points of failure, where a sequencer could be compromised or act maliciously, censoring transactions or manipulating the order in which they are processed. Such centralization undermines the core principles of decentralization, trustlessness, and censorship resistance that blockchain technology aims to uphold.

Shared Sequencers, Decentralized Sequencers, and Based Rollup Sequencers

There are different approaches to addressing these risks:

1. Shared Sequencers: In this model, sequencers are shared across multiple L2 solutions, providing a unified transaction ordering service. Shared sequencers enhance composability between L2 chains and reduce the likelihood of conflicts, but they still concentrate power in a few entities, which could become a target for censorship or manipulation.

   
   

2. Decentralized Sequencers: Decentralized sequencing involves a network of nodes that collectively manage transaction ordering. This approach reduces the risk of centralization and censorship, as no single entity has control over the sequencing process. However, achieving full decentralization in practice is complex and requires robust mechanisms for coordination and consensus.

   
   

3. Based Rollup Sequencers: Based sequencing takes decentralization a step further by using the L1 chain itself as the sequencer. This method leverages the existing decentralized validator set of the L1 blockchain, ensuring that no single entity can manipulate or censor transactions. Based rollup sequencers are thus the most aligned with the principles of decentralization, censorship resistance, and fairness.

Why Based Rollups Are the Future of Post-Capitalism

Based rollups represent the ideal infrastructure for post-capitalist economies. By prioritizing decentralization and resisting centralization, they ensure that power remains distributed among all participants. This decentralization is crucial for creating economic systems that are not dominated by corporate interests or state control but instead, empower individuals and communities to manage their own affairs.

Additionally, based rollups offer significant benefits in terms of cross-chain composability and the mitigation of toxic MEV (Maximal Extractable Value):

• Cross-Chain Composability: Based rollups enhance interoperability not only between L2s and the L1 but also among different L2s themselves. This composability allows for the seamless integration of various decentralized applications (dApps) and economic models across chains, creating a vibrant and interconnected ecosystem. Such an ecosystem supports diverse post-capitalist experiments by enabling them to interact and cooperate without friction, further empowering communities to build on each other's innovations.

  
  

• Mitigation of Toxic MEV: Toxic MEV, where validators or miners extract undue value at the expense of users through practices like front-running, is a significant concern in centralized and semi-decentralized blockchain environments. Based rollups, by utilizing decentralized sequencing, reduce the opportunities for toxic MEV. This is achieved through fairer transaction ordering mechanisms and transparency in how transactions are processed. Innovations such as Inclusion Lists, Pre-confirmations, and Execution Tickets help ensure that economic value is not unfairly extracted but rather distributed equitably among network participants.

  
  

In the future of post-capitalism, where fairness, equity, and autonomy are paramount, based rollups provide the most robust and resilient foundation.

Diverse Post-Capitalist Orientations Supported by Based L2 Chains

The flexibility and adaptability of L2 and L3 chains make them ideal for supporting a wide range of post-capitalist orientations, philosophies, and ideologies. Each of these orientations can leverage the unique features of blockchain to build economies that reflect their specific values and goals:

1. Anarcho-Syndicalism: Based L2 chains can facilitate decentralized, worker-controlled syndicates that operate autonomously within a larger federation. Smart contracts can manage cooperative ownership, decision-making processes, and the equitable distribution of resources among syndicate members.

   
   

2. Council Communism: L2 chains can support a council-based structure where decisions are made through direct democracy at multiple levels. Councils at local, regional, and global levels can interact seamlessly through interoperable L2 chains, ensuring that all members have a voice in the economic decisions that affect them.

   
   

3. Libertarian Municipalism/Confederalism: These orientations advocate for decentralized, community-based governance structures that federate into larger confederations. Based rollups can facilitate the self-management of municipalities, allowing them to operate autonomously while cooperating with other communities in a confederated network.

   
   

4. Autonomism: Autonomist movements, which emphasize self-organization and the autonomy of social movements from state and capitalist structures, can use L2 chains to create parallel economic systems. These systems can operate independently of traditional financial institutions, using blockchain and direct democracy to manage resources, coordinate actions, and build solidarity networks.

   
   

5. Participatory Economy: A participatory economy, or "Parecon," is a model that emphasizes participatory decision-making, balanced job complexes, and equitable distribution of resources. Based L2 chains can support this economic orientation by providing the technological infrastructure for decentralized planning and coordination. Smart contracts can automate the equitable distribution of resources based on need and effort, while DAOs can facilitate participatory decision-making processes at every level of economic activity.

   
   

   In this model, workers and consumers collectively decide on production, consumption, and allocation, ensuring that the economy operates in a way that is just and inclusive for all participants.

   
   

Across these orientations, the benefits of not only interoperability between based L2s and the L1 but also enhanced cross-chain composability among based L2s are significant. These features allow different economic systems to cooperate and share resources while maintaining their unique governance and operational models.

This interconnectivity fosters innovation and solidarity across various post-capitalist movements, enabling them to strengthen each other and build a more robust and resilient alternative to capitalism.

The Future Is Based

The future of post-capitalism is inherently based—built on decentralized, trustless, and censorship-resistant technologies that empower individuals and communities. L2 and L3 chains, particularly those relying on based sequencing, could be at the forefront of this transformation. By supporting a diverse array of anti-authoritarian post-capitalist orientations, these chains offer the infrastructure needed to build a world where equity, solidarity, and self-management are not just ideals, but lived realities.

In this future, economic systems are no longer dictated by the imperatives of capital but are shaped by the collective will of the people, each community crafting its own path toward a just and sustainable society.