Topic: Are L3s worth it? (Read 312 times)

It is quite natural to desire more and more money and this important human emotion drives the hype in the market. On the other hand fear of loss pushes us to take exit. These two core emotion are behind motivating the traders to take entry and exit from market.

Regrading Layer token (L3), its performance has been lacklustre since it was listed, which demonstrates its weak utility, therefore developers of the project need to do something to enhance its utility to make it attractive for investment.

Having more funds to spare or put into the pocket is the real hype behind it, in my opinion, too. It's our nature to want more, and more so for corps and founders. Thanks for this thread!

You are absolutely right, Layer3 (L3) is not serving any meaningful purpose, and its market performance reflects how poorly is its acceptance in cryptocurrencies market. Its main net was recently launched and its community has been working for month for its airdrop farming, spent lot of funds to to accumulate cubes and in the end very few participants were rewarded with L3 tokens which are worthless now due to widespread disappointment within the community.

Exactly. L3s would be limited to L2s' transaction capacity. What if L3s become congested in the long run? Developers will come up with L4s as a short-term fix. Then we'll have L5s, L6s, and so on. A complete waste of time and money, imo.

What works best is on-chain scaling. If developers focused on this, we wouldn't had to deal with too many unnecessary layers. Having only two layers is good enough for me. I think developers are hyping L3s to fill their pockets with money. It's all about greed these days. I'd definitely wait to see some real world applications for L3s. I don't think the hype will last that much tbh.

With new innovations and other shenanigans, for sure It's a cycle of progress.

I agree with what you mentioned here dude, because in just layer 2 we have a lot of cryptos that can really be taken advantage of besides the low fee's that are here. And it can also give us a good profit in the future as well.

Actually, some of these I hold for my long-term holdings as well which I know will be beneficial in the right time of bull run that we are waiting for right now.
So for now lets accumulate while there is a chance for us to do it.

I guess that nobody can stop innovations and as far as technology is concerned we'll keep seeing upgrades everyday. So developers are always at work trying to invent upgrades of existing layers and it won't surprise me if we continue to see more layers in the future. Layer3 might not seem to be necessary for many today but as it's an added innovation to layer2 we should just accept it as a plus in the layers. Adoption in the crypto space is increasing and I wouldn't complain if I'm seeing more innovations by developers.

Yes. That's the #1 reason why blockchain ends up bloated. There are too many "shitcoins" and "meme" coins taking away unecessary block space. Constant interactions of tokens and dApps will greatly reduce network performance and cost-efficiency. Since Ethereum is the largest smart contract platform in the world, it suffers from severe network congestion. Developers need to roll out constant network upgrades to keep fees as low as possible. But they won't do it because they want everyone to move to centralized L2s instead.

L3s are nothing new as they're layers built on top of existing ones (L2s). They'll be overhyped so developers can keep filling their pockets with money. It's all a cash grab. "Infinite scaling" is what developers should've considered in the first place.

As I've stated before, Pascalcoin's "SafeBox" mechanism allows "infinite scaling" without compromising decentralization. Accounts usually have a record of the last recorded balance before previous blocks are purged from the system. Sort of like a "checkpoint" used by classical PoS coins (eg: Peercoin and Blackcoin). Unfortunately, there's not much interest in doing something like this for Ethereum because of the reasons mentioned earlier. Everyone is following the hype ("meme" coins, NFTs, AI tokens, etc). Perhaps, we'll see L4s become a thing after L3s reach their full capacity? Only time will tell. Hopefully, decentralization is preserved for generations.

Why are you focused on the investor side? If a certain investor doesn't understand something he/she simply doesn't invest in it; it doesn't automatically make the asset bad lmao. And if the investor doesn't even understand the concept of a Layer 3 network, then why the heck are you still in the cryptocurrency space.

Not really. They are expensive and complicated. A lot of investors do not even understand the concept of it. It requires a much complex set of knowledge and skills to be able to be utilized. Maybe if investors understood it in a simpler way then we could all use it to our benefits but instead we just don’t.

Current projects advertising themselves as "L3s" are basically "sidechains with a 2-way peg of a sidechain token".

This can have some benefits. For example, let's say in the future billions of people use a particular cryptocurrency like BTC or ETH. We would need several L2s for this currency to be able to be used with reasonable throughput and fees by such a high number of people. A L3 could then offer 2-way-pegs for several L2 currencies and make it easier to interact with counterparties using other L2s.

I however generally see more potential for Lightning as a L3. Lightning could route payments between different channels opened on different L2 blockchains and thus provide the same benefit than a "sidechain L3", additionally bringing more privacy, instant payments and no dependency on a sidechain consensus (which may not be infallible). The only thing it needs are exchange nodes working with atomic swaps. Taproot Assets (ex Taro) for example has such a feature.

I hadn't heard about that tech and looked now briefly into it. I think it does not solve the issue. It seems to be simply a "mini-blockchain" coin similar to Kaspa or Cryptonite, where not all blocks are stored forever but basically the UTXO set is periodically exchanged between all nodes. This solves only the problem of storage but not the problem of transaction propagation and verification, and storage is not exactly the most urgent problem when we "scale" a blockchain.

L2s do solve this problem because not all nodes have to verify all transactions, and L3s could help too a bit.

However, I think most of current "L3s" are simply scams with completely awkward tokenomics.

It's normal that users will only increase, the longer it gets. But I think I can agree when you say it depends on the market. There are times where the market is in demand and so as the fees rises, so some people will look for a cheaper alternative and they can check out these L3 because they are still underrated.

But, I think when lots of people uses and stick on them, they will be like the others who will also became slow and buggy. But at least, we have more options to choose from now, right? And other networks can now relax for a while. Obviously, L3's are only an upgrade of L2 and L2 is an upgrade of L1. I wouldn't be surprise if there will be L4, L5 and so on... later on .

if we talk about the usability of the projects and the scope related to the problem solving then they have a very bright future. These projects are mostly based on the problem solving strategies which are integrated in their fundamentals.

Like layer3 projects of SoL solved the major problem that it's competition ETH was facing and that was congestion. So because of problem solving skill set in their base they have bright Future.

if we talk about the usability of the projects and the scope related to the problem solving then they have a very bright future. These projects are mostly based on the problem solving strategies which are integrated in their fundamentals.

Like layer3 projects of SoL solved the major problem that it's competition ETH was facing and that was congestion. So because of problem solving skill set in their base they have bright Future.

I don't think L2s is fast and cheap and if it was fast and cheap there was no need for the L3 Blockchain. Ethereum uses the both layers. Upon using L2 as a backup Blockchain in the network it still face with congestion and high transaction fee. And if layer3 is created and inserted in the Blockchain, Solana and Ethereum will still face congestion because of the memecoins and the  shitcoins using the networks.

Layer 3 networks provide blockchains more customizability which attracts more investors however I wouldn’t say it’s exactly necessary. What I think it’s doing is dividing the community more. It’s getting complex and complicated and not everyone can easily follow.
I get why they are being hyped. I also do see some advantages in Layer 3 networks but is it worth it to be added? Will the good outweigh its un-necessity ? Probably not.

Of course it's a cash grab. Developers want to make hype just to fill their pockets with money. L3s aren't necessary, especially when L2s are still fast and cheap to use. I'd imagine layers built on top of others to remedy long-term scaling issues. So we would have L1s, L2s, L3s, L4s, and so on. All of this complexity will eventually confuse people. Especially those who are new to crypto/Blockchain tech.

Pascalcoin's (PASC) "Safe Box" mechanism already solves Blockchain's scaling issues. This eliminates the need to build additional layers. If developers from other projects used this tech, all of our problems would be solved. They won't do it because they want to keep filling their pockets with money. Just like how ETH devs are forcing users to move to centralized L2s networks instead of dealing of with on-chain issues first (increasing transaction capacity, etc). When will we learn? 

seem to be the use case of the crypto. it's necessary as it adds up the adoption. if the community is using those services, it serves the purpose.

That's a good ass meme but saying it's "just a buzzword, nothing different, just an another new network" is an extreme oversimplification. The lower it goes down the layer, the less secure, the less decentralized, and the less amount of money people should trust the lower layer with. Higher layers(L1/L2) for bigger amounts of money, the lower layers(L3, etc) for 'pocket wallet' amounts of money(P2P payments, etc).

There maybe a reason why developers need L3 but I am sure the hype will die before it begins. Just look at all these L2, people are not really warming to them, it as if they was to fragment Ethereum network into different ecosystem, If L2 don't get real adoption why do you think L3 will. I don't see them as investment proposition for now to build thesis around them