Polygon Labs CEO says Layer 3 networks risks to Ethereum blockchain

According to Marc Boiron, L3 networks are not necessary for scaling

01.04.2024 - 08:20

2 min

What’s new? Polygon Labs CEO Marc Boiron has explained the company’s refusal to develop Layer 3 (L3) networks using the Ethereum blockchain as an example. In his opinion, L3 networks exist solely to take value from the underlying blockchain and move it to Layer 2 networks, which in turn are built on top of L3 networks. As a result, the Ethereum main blockchain, by not receiving value, is jeopardized, explained Boiron. He also believes that L3 networks are not necessary for scaling.

Source: Twitter.com

What else is known? The announcement comes on the back of the launch of the Degen Chain network using Arbitrum Orbit by infrastructure provider Syndicate. It is a low-fee network for the Degen (DEGEN) token, which has become the de facto token of the Web 3.0 social networking community Farcaster. Farcaster is powered by Ethereum’s L2 network, and the Degen Chain is thus a Layer 3 network.

The DEGEN token was originally launched on the Ethereum-based L2-network Base created by US crypto exchange Coinbase. Over the past 24 hours, the DEGEN exchange rate has increased by 24% and reached a record of $0,06.

In addition, Farcaster developer Merkle Manufactory, created by former Coinbase senior executives Varun Srinivasan and Dan Romero, may soon acquire unicorn status. So, according to Bloomberg sources, the company is nearing the end of a funding round led by Paradigm, at the end of which its valuation could reach $1 billion.

Earlier, a subsidiary of the Japanese banking giant Nomura launched an institutional staking fund based on the native token of the Polygon (MATIC) blockchain.

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