Are L3s Detrimental to Ethereum’s Value?

Marc Boiron Questions the Necessity of Layer-3 Networks

Marc Boiron, the CEO of Polygon, has ignited a contentious debate on social media platform X (formerly Twitter) regarding the role and necessity of layer-3 (L3) networks in the Ethereum ecosystem. Boiron argues that L3s, which are built on top of layer-2 (L2) networks, primarily serve to divert value away from the Ethereum mainnet.

The Core of the Debate: L2 vs. L3 Value

Boiron’s stance is that L3 networks are not essential for scaling Ethereum and that their existence might undermine the value and security of the Ethereum mainnet. He posits that if all L3s were to settle transactions on a single L2, Ethereum would capture little to no value, thereby jeopardizing its security.

Differing Opinions on L3’s Impact

The Polygon CEO’s comments have sparked a lively discussion among industry experts and enthusiasts. Some argue that L2s inherently contribute value to Ethereum, while others believe that L3s offer benefits without necessarily detracting from Ethereum’s value. Peter Haymond, Senior Partnership Manager at Offchain Labs, highlighted advantages such as lower bridging costs, custom gas tokens, and specialized state transition functions that L3s can provide.

The Evolving L3 Ecosystem

Despite the controversy, the L3 ecosystem continues to grow, with solutions like Orbs, Xai, zkSync Hyperchains, and Degen Chain on Arbitrum Orbit emerging as key players. However, the sector remains relatively small, with only a handful of L3 tokens listed on CoinGecko.

Perspectives from Industry Leaders

Ethereum co-founder Vitalik Buterin previously weighed in on the L3 debate, suggesting that L3s should offer “customized functionality” distinct from L2s’ scaling capabilities. Meanwhile, Helus Labs CEO Mert Mumtaz echoed Boiron’s concerns, describing L3s as “centralized servers settling on other centralized servers (L2s).”