Compilation of the original text: The Way of the Metaverse

Compilation of the original text: The Way of the Metaverse

Note: On December 29, Ethereum developer Ryan Berckmans published some of his thoughts on Ethereum L2, the following is the compiled content.

Some Thoughts on Ethereum L2

• Is the L2 token positive sum with ETH? Yes

• Will L2s bring huge fees and value to ETH? Yes

• Is there an urgent need for L2s to launch tokens and pursue other L1-style growth initiatives? Yes

This will be a big year for L2s vs L1 competing chains

There have been some recent statements that seem to cast doubt on whether L2 and L2 tokens might actually have a positive relationship with ETH. But in my opinion, the answer is very positive, and I'll explore that through some of these claims.

For example, one argument is that L2 tokens and ETH will compete in zero-sum. I disagree with this. In my opinion, L2 tokens and ETH are positive sum. L2 tokens can maintain a premium from L2 network effects, confidence, etc., and pay fees to ETH from the premium. It's a win-win situation.

Another way of saying this is that L2 doesn't end up paying huge fees to ETH because by bundling many L2 txns in one batch, L2 only needs to pay a small amount of ETH settlement fees for a small amount of gas. In my opinion, this is also wrong. L2 will bring huge fees and value to ETH for the following reasons:

• When L2 is successfully deployed on ETH, L2 obtains a trustless bridge between L1 and L2, including applications, tokens and liquidity. With the development of eth, these bridges will accumulate into an asset network, allowing any L2 to access any asset of any other L2 or L1 in a trustless manner.

• In eth's asset network, each L2 growth increases the value of all gas, as growth helps bootstrap applications, tokens, and liquidity networks that are trustless and trustworthy on Ethereum programmed...

• As the eth asset network grows, the average value per user will increase, so will the willingness to pay for block space, and, given the fixed supply auction of L1 block space, the gas value will increase as the total fee increases. Increase.

• In eth asset net, the bridge is"to trust"This fact is very important. With a trustless bridge between two mature L2s, your property rights to assets on the bridge are as strong as the ETH in your L1 wallet. In contrast, the bridge to L1 is multisig.

• So what about the above statement about L2 paying only a flat eth fee for high-volume transactions? If StarkNet can settle 80,000 transactions with a relatively low, uniform eth fee, is that good or bad for ETH?

• This is undoubtedly a good thing for ETH, because StarkNet pays a high dollar price per unit of gas, and when StarkNet grows, their contribution to the eth asset network will also grow. And as eth develops, there will be 100 other StarkNets joining to do the same, then the total gas cost will be huge.

In short, I think it seems likely that the L2 ecosystem will work well and help Ethereum grow, accumulating a lot of value for the L2 token and ETH.

Given that I am generally bullish on ETH and our L2 ecosystem, I also want to touch on some of the growth challenges we may face next year.

Today, Ethereum does not seem to be doing very well in terms of user growth and has been (temporarily) eliminated. Mass-market users are flocking to centralized L1s with lower fees, and some businesses/governments are building on other L1s due to hard sell by partly organized business development teams.

I think the most critical milestone for eth to reach next year, aside from the consolidation in Q2, is for a single L2 to actually achieve mass-market growth. But how can we get there? To try and answer this question, I'd like to have a look at this question,"What is L2?"

What is L2? From the user's point of view, L2 is just a public chain. Its disadvantage is that it is newer than ALT L1, but it has eth's first-class property rights, cheap Opex, and the support of the Ethereum community and access to the Ethereum trustless bridge asset network. benefit.

In my opinion, it is more correct to consider the market of L1s and L2s as a single market for public chains. Therefore, I feel that Ethereum's L2s may urgently need to consider exploring growth strategies that are effective for alt L1s, including possibly launching tokens as soon as possible.

By the end of 2022, I am optimistic that our L2 will launch tokens, run incentive programs, and attract new mass market users and groups. Hopefully we can see the Ethereum trustless asset network start to mature and become the preferred interest for new public chains.

In response, a Twitter user commented:

Will the negative effect of eth (Stark batching transactions) outweigh the positive effect (Stark pays a higher dollar price per unit of gas)? Assuming the positive side depends on more L2 being added - don't you think L2 has more value relative to eth then?

Ryan Berckmans replied:

I'm not sure what Starknet or any L2 might do because of the payment"too little"The gas fee will cause a net loss to eth. For example, if today, everything on eth suddenly uses no gas (0 gas), then this will simply release a lot of gas to other users, while the total fee income will only drop in the short term.
I think you are right, the maximum value accumulation of ETH depends on the addition of more L2. I think it's relatively bad for us if an L2 becomes too powerful. It seems best to have a good balance of initial power and traction between Arb, Optimism, zkSync, and StarkNet.