[PART 1] The Ethereum Layer-2 Wars (They’re a Thing, They’ve Begun, Here’s How)

TL;DR

There’re 20+ L2 chains being constructed on ETH, and every challenge is someway satisfied they’re not in competitors with the following (they’re, and it is ‘winner takes most’).

Full Story

Bear in mind on the ending of Terminator 3, how you discover out the human/cyborg warfare had already quietly begun earlier within the film…

However it took the people the higher a part of the 1hr 49min watch time to determine all of it out?

The Ethereum layer-2 (L2) state of affairs is paying homage to that.

There are a BUNCH of L2 blockchains being constructed on high of Ethereum, and every challenge is (someway) satisfied they’re not in competitors with the following.

Somewhat, they’re all doing it for the larger good of Ethereum (that is known as ‘Ethereum alignment’).

In actuality, these L2 chains are at warfare with each other.

(Whether or not they notice/admit it, or not).

Daring phrases, we all know! So let’s again them up. Beginning with the ‘what’ of all of it…

The Ethereum mainnet (aka the ‘layer-1’) is sort of a freight prepare (sluggish, costly, however extremely safe/dependable), whereas L2 chains are like passenger trains (quick, low-cost, however rather less dependable/safe).

Each depend on the identical set of rails (the Ethereum community) to function, however serve completely different functions.

…and as romantic because it may appear:

You’re not going to need to use a freight prepare (ETH) for private transport (on a regular basis transactions) trigger it’s not designed for it! It’s simply too rattling sluggish/costly.

(Suppose wherever between $3-$3k in charges per transaction, relying on demand).

Okay, so why the ‘warfare’?

Nicely, proper now, there’re one thing like 20+ layer-2 chains competing on your cash/consideration/patronage.

Are you able to think about a prepare system the place there have been 20 completely different passenger prepare firms competing for patrons?

Image it…maintain that picture in your thoughts…okay, obtained it? Good.

Now, let’s make issues much more complicated:

Think about that the platform you had been boarding from decided the prepare firm you’d use — and that that firm had its personal foreign money/ticketing system that didn’t play good with any of the opposite firms.

Which meant if you happen to wanted to vary trains sooner or later, it’s going to lead to switch charges and an extended wait time.

Okay, okay, this analogy is getting approach too heady.

However that’s kinda the purpose — the Ethereum L2 ecosystem is a multitude proper now, identical to this fictional prepare system!

The identical approach Amtrak owns the vast majority of the interstate passenger rail market within the US, we consider we’ll inevitably see a dominant L2 take over on Ethereum.

It gained’t be winner takes all, however as a substitute: winner takes most.

Wanna know why?

Click on right here to learn Half 2…