TL;DR
There’re 20+ L2 chains being constructed on ETH, and every undertaking 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 struggle had already quietly begun earlier within the film…
But it surely 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 paying homage to that.
There are a BUNCH of L2 blockchains being constructed on prime of Ethereum, and every undertaking is (in some way) satisfied they’re not in competitors with the following.
Fairly, they’re all doing it for the larger good of Ethereum (that is known as ‘Ethereum alignment’).
In actuality, these L2 chains are at struggle 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 practice (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 may appear:
You’re not going to need to use a freight practice (ETH) for private transport (on a regular basis transactions) trigger it’s not designed for it! It’s simply too rattling sluggish/costly.
(Suppose anyplace between $3-$3k in charges per transaction, relying on demand).
Okay, so why the ‘struggle’?
Nicely, proper now, there’re one thing like 20+ layer-2 chains competing on your cash/consideration/patronage.
Are you able to think about a practice system the place there have been 20 totally different passenger practice corporations competing for purchasers?
Image it…maintain that picture in your thoughts…okay, obtained it? Good.
Now, let’s make issues much more advanced:
Think about that the platform you had been boarding from decided the practice firm you’d use — and that that firm had its personal forex/ticketing system that didn’t play good with any of the opposite corporations.
Which meant for those who wanted to vary trains sooner or later, it’s going to lead to 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 large number proper now, similar to this fictional practice system!
The identical means Amtrak owns the vast majority of the interstate passenger rail market within the US, we consider we’ll inevitably see a dominant L2 take over on Ethereum.
It gained’t be winner takes all, however as a substitute: winner takes most.
Wanna know why?
Click on right here to learn Half 2…