Layer 2 in 2022: Get Ready for Rollups, Bridges, New Apps, Li | Crypto Mountains
Layer 2 in 2022: Get Ready for Rollups, Bridges, New Apps, Life With Ethereum 2.0, and Layer 3.
2022 is estimated to be the year when Ethereum (ETH) -- the biggest smart contract-capable blockchain in terms of total value locked in -- finally moves to a proof-of-stake (PoS) consensus mechanism. If it’s not delayed again. For some observers, such a transition could mean that layer 2 (L2) solutions built on top of Ethereum, such as Polygon (MATIC), Loopring (LRC), Arbitrum, Optimism, and StarkWare (to name only a few) become more or less redundant, insofar as Ethereum will be able to scale for itself.
However, figures working within the sub-sector all unanimously claim that L2 platforms will not only remain relevant after Ethereum 2.0’s (which is now being rebranded to “consensus layer”) arrival, but will have a strong 2022. Demand for such platforms will grow this year in tandem with the use of Ethereum itself, as smaller transactions and business applications seek the fastest and most cost-effective mechanisms.
At the same time, particular L2 trends might emerge this year, from the growth of zero-knowledge rollups (ZK rollups) and interoperability between platforms to native L2 applications and even the emergence of ‘layer 3.’
Ethereum 2.0 = The end of L2?
Pretty much no one seems to believe that the arrival of Ethereum 2.0 (due at some point in the first half of this year) will make L2 solutions unnecessary. Instead, one of the prevailing trends for this year might be their continuing -- and growing -- relevance.
“Even if Ethereum 2.0 archives its full scaling potential of offering a 64-fold improvement, it will still likely fall short of expected demand,” said a spokesperson for Polygon.
Crypto is currently in the early stages of the adoption curve, with gaming studios, brands, financial institutions, and Web 2 players just getting started with Web 3. Enterprises are only beginning to explore this space, and for the team at Polygon, the demand is already an order of magnitude more than the expected scaling that will be achieved with Ethereum 2.0.
In other words, L2 will only become more necessary as crypto and blockchain attract substantial real-world adoption.
“The Ethereum main chain will remain the settlement layer, while scaling solutions will emerge as the execution layer for the ecosystem. All the smaller business transactions will run on the scaling solutions and submit cryptographic proofs back to Ethereum,” Polygon’s spokesperson told Cryptonews com.
As an example, the spokesperson notes that the number of Aave (AAVE) users on Polygon has grown to more than double those on the Ethereum main chain in the last few months. For them, this means “that scaling solutions and higher adoption of the Ethereum ecosystem go hand in hand.”
