Ethereum’s scaling solutions provider StarkWare takes the technology one step further. The company has just unveiled a Layer 3 scaling solution for the Ethereum network.
In a December 21 blog post, StarkWare unveiled Layer 2 to Layer 3 “Fractal Scaling”. The company, which is already working on scaling Ethereum with Zero rollups -Knowledge (ZK accumulations), plans to develop this infrastructure with layer 3.
StarkWare has pointed out that the majority of Ethereum’s business will be on Layer 2 for the foreseeable future. The main reason for this migration is the increase in transaction costs on the L1. The company added that some applications require specific customization which can be better done by a new Layer 3.
Layer 3 will link to Layer 2 just like L2 is to Layer 1. It will be built on StarkNet’s L2 platform to provide “hyper-scalability”, thereby reducing Ethereum network costs.
StarkWare promises “hyper-scalability” of Ethereum
The project team explained that the system that provides evidence at Layer 1 can also provide evidence at Layer 2 from another layer.
“When L2 uses proofs of validity submitted to L1, like StarkNet does, you get an extremely sophisticated recursive structure. Thus, the benefit of compressing L2 evidence adds to the benefit of compressing L3 evidence ”.
Additionally, StarkWare clarified that while the L2 can achieve a hypothetical 1,000-fold cost reduction, the L3 can deliver a million-fold reduction over the L1 while still maintaining its security.
StarkWare Co-Founder and CEO Eli Ben-Sasson, also mentioned Validium, a hybrid scaling solution that keeps data off-chain. Validium uses zk-rollups to consolidate and execute transactions. But in this case, it will use them to provide custom data models for the L3.
The other advantage is the reduction in the cost of switching from L1 to L2, which remains quite high at present. In addition, the third layer will provide cheaper and easier interoperability. In addition, it could even play the role of “canary network” for L2 applications before their launch.
The company said StarkEx is currently operating as L2 but will soon be upgraded to L3. Then she clarified:
“L3 promises hyper scalability, better control of the technology stack for various needs and better privacy. All while preserving the security guarantees offered by layer 1 of Ethereum ”.
Current situation of the L2 ecosystem
The L2 ecosystem has exploded this year, not least due to skyrocketing Layer 1 transaction fees. As of this writing, $ 5.4 billion is stranded on L2 networks, according to L2beat.
This represents an increase of 11,200% since the start of the year and almost the equivalent of DeFi’s total TVL as of August 2020.
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