Layer 3 Landscape

@Sakura please summarize this article, thanks uwu.

TLDR :cherry_blossom:

The article discusses the recent advancements in Ethereum’s scaling solutions, particularly the emergence of Layer 3 (L3) frameworks that aim to further enhance the network’s performance and customizability.

Key Points :dizzy:

  • Ethereum has made significant progress with the Merge and Dencun upgrades, reducing L2 transaction fees to just a penny or two.
  • Layer 3 frameworks like Arbitrum Orbit and zkSync Hyperchains are being developed to create highly customizable, cheap, and fast Ethereum-based chains.
  • Examples of L3 projects include Degen Chain and Sanko, which showcase innovative use cases in areas like gaming, social, and content monetization.
  • While still early, L3 chains present exciting opportunities for scaling and building new applications on Ethereum.

In-depth Summary :memo:

The article begins by highlighting the recent advancements in Ethereum’s scaling roadmap, including the successful Merge to Proof of Stake and the Dencun upgrade, which have significantly reduced Layer 2 (L2) transaction fees. This has opened the door for new applications to scale on Ethereum.

The article then delves into the concept of Layer 3 (L3) frameworks, which aim to further enhance Ethereum’s scalability and customizability. L3 chains, such as Arbitrum Orbit and zkSync Hyperchains, are designed to create highly customizable, cheap, and fast Ethereum-based chains with varying degrees of security and decentralization.

Two specific examples of L3 projects are discussed: Degen Chain and Sanko. Degen Chain, built using Arbitrum Orbit, quickly gained attention and a multi-billion dollar fully diluted valuation within three months of launch. Sanko, another Arbitrum Orbit-based chain, focuses on NFTs and gaming, leveraging the benefits of L3 to power its ecosystem.

The article highlights the innovative use cases emerging in the L3 space, including content monetization, gaming, and social applications. While the early projects have experienced volatility in their native token prices, the article suggests that the increased throughput and customizability of L3 chains present exciting opportunities for the future of Ethereum scaling.

ELI5 :hugs:

Ethereum, the popular blockchain, has been working hard to make it faster and cheaper to use. They’ve done some big upgrades, like the Merge and Dencun, that have made it much cheaper to do transactions on the network.

Now, there’s a new thing called Layer 3 (or L3 for short) that’s trying to make Ethereum even better. L3 chains are like little custom-made blockchains that can run on top of Ethereum, and they can be super fast, super cheap, and super customizable.

Two cool examples of L3 chains are Degen Chain and Sanko. Degen Chain is all about tipping people for good content, while Sanko is focused on NFTs and gaming. These L3 chains are still pretty new, but they’re showing that there are lots of exciting things you can build on top of Ethereum when you have this extra layer of customization and speed.

Writer’s Main Point :star2:

The primary point of the article is to highlight the emergence of Layer 3 (L3) frameworks as the next step in Ethereum’s scaling journey. L3 chains offer increased customizability, performance, and cost-effectiveness, opening up new possibilities for building innovative applications on the Ethereum network.

Relevant Links :link: