Vitalik Buterin, the co-founder of Ethereum, which recently migrated to Proof-of-Stake (PoS) is already thinking about Layer 3, sharing what he believes would be the future of blockchain scaling.

Buterin on Layer 3

The base layer of a blockchain network such as Ethereum, Cardano, or Solana, is referred to as Layer 1. Layer-2 solutions are built on Layer-1 blockchains to provide better scalability for the base layer. 

Buterin believes that a layer 3 solution would only make sense if used for different purposes other than scaling. Hence, layer 3 solutions cannot consist of stacked rollups as it would lead to inefficient data compression.

Buterin Shares His Vision for Layer 3 Solutions

In a blog post titled “What kind of layer 3s make sense?” Buterin explained that Layer 3 solutions can be implemented in privacy-focused chains by utilizing zk proofs to submit private transactions to layer 2.

According to Buterin, layer 3 solutions can also be built around non-EVM platforms, customized scaling solutions for specific applications, or validiums (which are another kind of roll-up).

Buterin’s comments on possible layer 3 use cases come as StarkWare’s newly produced recursive validity proofs appear to have possibly put an end to Ethereum’s scalability concerns.

On the Flipside

Vitalik Buterin has also argued that decentralized autonomous organizations (DAOs) shouldn’t resemble corporations.

Why You Should Care

Since layer 2 solutions on the same network efficiently perform cross-border transactions, layer 3s may not improve the efficiency of the network.

To understand blockchain networks, read: Layer 1 vs Layer 2: Understanding How Blockchain Scaling Solutions Work

Read about the Ethereum transition below: Ethereum Is Now a Proof-of-Stake Network After Merge Goes Off Without a Hitch

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