Polygon (MATIC) Labs has taken a firm stance against the rise of Layer 3 chains, arguing that they do not offer significant advantages over existing Layer 2 solutions. In a recent publication, the company asserts that Layer 3 chains can achieve the same benefits as Layer 2s without the associated drawbacks.

Critique of Layer 3 Chains by Polygon
Polygon Labs contends that Layer 3 chains lack a clear purpose and are merely a superficial addition. They argue that the primary benefits of Layer 3 chains primarily benefit the parent Layer 2, while users bear the burden of fragmentation and reliance on the Layer 2 for security and governance.

Customization and Cost Efficiency
According to Polygon Labs, Layer 2 chains developed using their CDK exhibit comparable levels of customization to Layer 3 chains without compromising sovereignty. They also claim that Layer 2 chains empowered by zero-knowledge technology through Polygon's AggLayer can reduce transaction fees by consolidating proofs, thus nullifying the cost advantages of Layer 3 chains.

Interoperability and User Onboarding
The company asserts that the purported enhanced interoperability of Layer 3 chains imposes significant costs on developers and users due to fees extracted by the parent Layer 2. Polygon's AggLayer offers swift and seamless transactions, addressing this issue effectively.

Regarding user onboarding through centralized exchanges, Polygon Labs emphasizes that Layer 3 chains rely on the Layer 2 chain for connectivity to exchanges. Conversely, with a chain linked to AggLayer, new Layer 2 chains can onboard users from any exchange connected to Layer 2.

Insights from Ethereum Co-founder
Vitalik Buterin, co-founder of Ethereum, has expressed skepticism about the viability of Layer 3 chains as scaling solutions but suggests they could serve alternative functions, such as data availability layers.

Impact on the Ethereum Ecosystem
The ongoing discussions surrounding Layer 3 chains provide valuable insights for users seeking to comprehend their functionality and potential within the Ethereum ecosystem. As Ethereum's development roadmap increasingly focuses on rollup solutions, the emergence of Layer 3 chains has sparked dialogues among diverse stakeholders in the cryptocurrency sphere.