The evolution of blockchain technology is a case study for tech geeks and crypto enthusiasts looking to stay ahead of the curve all the time. What started as a mere route to facilitate secure transactions now spearheads the emergence of an entire economy, encapsulating multiple sub-domains within it. But as the mass adoption of goes through the roof, it faces a few challenges: lack of scalability, costly transactions, and lack of customization. blockchain Layer 2 As A Partial Solution As leading Layer 1 (L1) solutions like Ethereum and Solana witnessed increased adoption, one of the most significant challenges they faced was network congestion. What does this mean? This means L1 chains were overwhelmed with an increasing number of transactions, thanks to their ultra-low TPS. , the most popular L1 out there, could facilitate less than 20 transactions per second (tps). Solana did better - up to 3,000 tps. However, emerging market needs were much higher than the capacity of L1s. Thus, L2s emerged. Ethereum Layer 2 solutions are built atop Layer 1 solutions to boost scalability. As L2s increase tps significantly, it leads to the solution of another L1-centric challenge - high gas fees. With L2s able to facilitate a significantly higher number of transactions, cost is bound to decrease. However, L1s are still in charge of security and decentralization. L2s also allow different chains to communicate with each other, making them interoperable. For now, here are some other popular L2s: Optimism, Arbitrum, Starknet, etc. What’s Wrong With Layer 2 Blockchains The emergence of L2s might have made some stakeholders think that the blockchain trilemma was a thing of the past, but with centralization and security risks making a comeback, we are back to square one. While L2s increase scalability substantially, they may require a central authority to operate. With centralization woes returning, we are already straying away from the core principle of Web3 - decentralization. Also, L2s come with an inherent security risk, and ever-increasing breaches are a testament to that. Most importantly, they are complex to operate with. Mass onboarding to the , i.e., Web3, is highly unlikely without a Web2-like UX. No mass onboarding - > no volume - > no bull run. Do the math. next iteration of the internet Layer 3 and Mass Adoption The adoption of blockchain across industries has skyrocketed over the last few years. As many as have either adopted the technology or plan to do so. Clearly, existing Layer 2 infrastructure is about to get overwhelmed with an increasing number of transactions moving on-chain. 65 big and small industries As more and more asset classes move on-chain, the need for high throughput is going to skyrocket. It is to accommodate this requirement that L3s existed as a thought. But innovators thought of killing multiple birds with one stone. So, L3s promise to increase throughput, enable enhanced decentralization to ensure complete transparency, and introduce customization. How many reliable L3 solutions exist? Zero. But that’s going to be a thing of the past soon. Several emerging projects are also working tirelessly to introduce revolutionary L3 chains. Arbitrum-powered is right at the top when it comes to catalyzing mass adoption through L3. Syndr How is Syndr using L3 to catalyze mass onboarding? Leveraging the customization potential of L3 to introduce on-chain derivatives trading with zero gas fee. Introducing self-custody for all. Leveraging L3s high throughput feature to introduce ultra-low latency. Introducing social logins to offer a Web2-like experience on a Web3 platform. While I don’t have the resources to conduct a survey that tells us how many people resist trading derivatives due to complex interfaces, it is a pain point shared by stakeholders across the DeFi ecosystem. User Friendly Interface + Zero Gas Fee = Mass Adoption Imagine you being able to log in to a decentralized derivatives exchange through your Facebook or Instagram account, take trades with zero gas fee, and still remain the only custodian of your funds. Isn’t that what the blockchain movement promised from the very beginning? What prevented existing solutions from fulfilling that promise was the aforementioned challenges. Now that Syndr has solved those challenges, mass adoption is not a matter of if but when. More people entering the crypto space means more volume. More volume means increased liquidity and also, increased demand. An increase in is bound to catalyze more green days, and I do not doubt that L3s are gonna spearhead the next bull run. Do you? demand for digital assets Do you know of any more such L3 projects? Let’s discuss this in the comments.

The is an opinion piece based on the author’s POV and does not necessarily reflect the views of HackerNoon.

5 Biggest Challenges That DEX Users Face

The Rise of Layer 3 Blockchain Is Going To Lead The Next Bull Run

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

5 Biggest Challenges That DEX Users Face

Airdrops: Marketing Strategies and Decentralization Nonsense

Arbitrum Architecture: Inbox

Creating NFTs in Arbitrum

How to Add Arbitrum to a MetaMask Wallet

The Arbitrum (ARB) SWOT Analysis

5 Biggest Challenges That DEX Users Face

Airdrops: Marketing Strategies and Decentralization Nonsense

Arbitrum Architecture: Inbox

Creating NFTs in Arbitrum

How to Add Arbitrum to a MetaMask Wallet

The Arbitrum (ARB) SWOT Analysis

Light-Mode

Classic

Newspaper

Minty

Dark-Mode

Neon Noir

Minty

HN StartUps