Read the Original Article on Linkedin:
Layer 3 represents an innovative approach to blockchain scalability and cost reduction on top of Layer 2. It serves as a customizable execution platform designed for hyper scalability and enhanced control over the technology stack, particularly through customized data availability models. At its core, L3 incorporates the fundamental components of a smart contract, tracking its state root on Layer 2 (L2), and utilizing a verifier smart contract to validate the integrity of state transition proofs, mirroring the structural principles of L2.
The key to L3's scalability📈 and cost reduction💸 lies in its unique architecture. First, it addresses the issue of high transaction costs on Layer 1 (L1) by leveraging the cost-efficiency of Layer 2 while preserving the advantages of decentralization, general-purpose logic, and composability. However, the challenge arises when decentralized applications (DApps) require tailored solutions, which is where L3 comes into play. L3 optimizes costs by submitting validity proofs to L2, creating an elegant recursive structure. Recursive proofs allow one proof to attest to the validity of another, resulting in multiple proofs being merged into a single proof. This compounding compression benefit significantly reduces gas costs, while still maintaining the robust security of L1.
In terms of interoperability costs, L3 offers distinct advantages. Interoperability between L2 and L3, as well as between different instances of L3, proves to be more cost-effective compared to interactions on L1. Interoperability costs encompass fees paid to bridges for transportation and the transaction settlement cost on the destination chain. While bridge transportation costs remain relatively fixed, regardless of where the bridging occurs, the significant variable lies in the destination chain transaction settlement cost. L1 incurs the highest transaction settlement cost, with L2 in the middle, and theoretically, L3 offering the most economical solution. As a result, interoperation between L2 and L3 or among different L3 instances proves to be notably cheaper than any comparable interactions on L1. This cost-efficient design makes L3 a promising solution for scaling and reducing the overall expenses associated with blockchain transactions.
Interested in learning more about blockchain’s real-world adoption from both a technical/architectural and strategic perspective? Follow me on LinkedIn and X (formerly Twitter - @ceciliasubmari1) and comment on the post below. I am always up for a good discussion!
Reference
https://medium.com/starkware/fractal-scaling-from-l2-to-l3-7fe238ecfb4f