[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 in some way 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 battle had already quietly begun earlier within the film…

Nevertheless 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) scenario is harking back to that.

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

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

In actuality, these L2 chains are at battle 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 totally different functions.

…and as romantic because it might sound:

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.

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

Okay, so why the ‘battle’?

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

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

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

Now, let’s make issues much more advanced:

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

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

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

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

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

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

Wanna know why?

Click on right here to learn Half 2…