Polygon Labs CEO Attacks Layer 3 Networks, Saying They Devalue Ethereum
In a recent chat on social media platform X, Polygon CEO Marc Boiron expressed strong criticism of the growing popularity of Layer 3 networks. According to Boiron, he believes that L3s are not necessary for Ethereum’s scalability and could instead potentially burden the network.
L3s Get Value from Ethereum
Boiron suggested that L3s primarily function to direct value away from Ethereum and into the Layer 2 solutions (L2s) on which they are built. He emphasizes that scaling Ethereum does not require the implementation of L3s.
Boiron also clarified that Polygon Labs was not involved in the development of L3s. While he acknowledged the importance of L2s in the Ethereum network, he challenged the idea that L2 value equals Ethereum value. He cited the potential risk to Ethereum’s security as settling all L3s into a single L2 would reduce Ethereum’s value capture and jeopardize its economic sustainability.
According to Boiron, if Ethereum stops generating fees and has no potential to generate fees beyond a single L2, the value of ETH will decline. This scenario could lead to validators losing trust in ETH, resulting in a decrease in network security as validators withdraw from securing the network.
Debate on the Benefits of L3 Growth
Peter Haymond, one of the community members responsible for creating scaling solutions for Ethereum, argued that Layer 3s come with many advantages and do not necessarily eliminate the value of Ethereum.
Boiron highlighted several factors regarding the benefits of Layer 2 (L2) solutions, highlighting the importance of the low cost of local bridging. While acknowledging the advantages, he also noted the economic and safety costs of relying on other bridges, which could lead to delays in capital utilization or require payment for accelerated capital utilization.L3s have many advantages. They do not receive the value of Ethereum.
— Peter Haymond(@peterhaymond) March 31, 2024
Additionally, he questioned the perceived benefits of a low-cost challenge or proof, suggesting that this may not be true given the evidence gathering. Similarly, Boiron dismissed the concept of custom gas tokens as a real benefit, noting that it is available for L2s in the Polygon CDK.
Finally, as mentioned earlier, he classified other potential benefits as those that were not specific to second languages, because they were also present for the second language.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
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