Polygon Labs Chief Exec Believes L3s Take Value Away from Ethereum

The ongoing discourse surrounding Ethereum’s scalability has been reignited by Polygon Labs CEO Marc Boiron, who sparked controversy over the necessity and implications of layer-3 (L3) networks within the Ethereum ecosystem.

Boiron asserted over the weekend that L3 networks are superfluous and primarily serve to siphon value away from Ethereum’s mainnet. He argued that Polygon Labs, Polygon’s layer-2 (L2) scaling network for Ethereum, does not engage in L3 development, citing it as unnecessary for scaling existing networks.

“L3s exist only to take value away from Ethereum and onto the L2s on which the L3s are built,” Boiron stated.

Polygon Exec Talks About L3 Networks

However, Boiron’s stance faced opposition, with critics arguing that L2 networks are integral to Ethereum’s value proposition. Responding to criticism, Boiron partially conceded, emphasizing that while L2 networks contribute to Ethereum’s value, they also risk diverting value away from the mainnet, potentially compromising its security.

Despite the criticism, Boiron reiterated Polygon’s commitment to scaling Ethereum using L2 solutions, emphasizing the importance of preserving Ethereum’s value while facilitating scalability.

“I disagree that L2 value is Ethereum value. Just take this to the extreme. If all L3s settled to one L2, then Ethereum would capture basically no value and, thus, Ethereum security would be at risk.”

What are L3 Networks?

Layer-3 protocols, built atop L2 networks, offer a range of solutions, including enhanced performance, interoperability, and customization. Leading players in the L3 ecosystem include Orbs, Xai, zkSync Hyperchains, and the recently launched Degen Chain on Arbitrum Orbit.

However, the adoption of L3 solutions remains limited, with only four L3 tokens listed by CoinGecko, indicating the sector’s nascent stage.

Vitalik Buterin Acknowledged L3 Networks

Some experts, such as Peter Haymond from Offchain Labs, highlighted the benefits of L3 networks, arguing that they do not necessarily detract from Ethereum’s value. They emphasized advantages such as low-cost native bridging from L2, specialized state transition functions, and customized gas tokens.

Despite differing opinions within the industry, Ethereum co-founder Vitalik Buterin had previously acknowledged the potential of L3 networks, suggesting they could provide unique functionalities beyond L2 scaling solutions.

As the debate continues, stakeholders grapple with the balance between scalability and maintaining Ethereum’s core value proposition. The discourse underscores the complexities inherent in navigating Ethereum’s evolution as it seeks to address scalability challenges while preserving its decentralized ethos.