In a recent development on April 1st, Boiron, the head of Polygon Labs, made a controversial statement regarding the devaluation of Ethereum by Layer-3 networks. He argued that Layer-3 networks do not enhance the scalability of existing networks like Ethereum but rather divert value away from Ethereum towards the Layer-2 networks they operate on.

Reactions to Boiron's Statements

Boiron's remarks faced opposition, with one individual arguing that Layer-2 networks on Ethereum do contribute value to the overall network. Boiron acknowledged this but raised a concern. He contended that the value generated by Layer-2 networks does not directly translate to the value of Ethereum. He warned that if all Layer-3 networks converged onto a single Layer-2 network, Ethereum could lose its value, posing a risk to its security.

Boiron emphasized that Polygon's focus is on scaling Ethereum uniquely through parallelization of the EVM and privacy measures, rather than engaging in the development of Layer-3 networks. He stressed that their goal is not to monopolize value onto Polygon networks at the expense of Ethereum.

Insights on Layer-3 Protocols

Layer-3 protocols are designed to support application-specific DApps on top of Layer-2 networks, offering solutions for scalability, performance, interoperability, customization, and cost-efficiency. Notable players in the Layer-3 ecosystem include Orbs, Xai, zkSync Hyperchains, and the recently launched Degen Chain on Arbitrum Orbit. Despite these advancements, the Layer-3 sector remains relatively small, with only four Layer-3 tokens listed on CoinGecko.

Peter Haymond from Offchain Labs highlighted the advantages of Layer-3 networks, such as cost-effective native bridging from Layer-2, efficient on-chain verification, custom gas tokens, and specialized state transition functions. These benefits, according to Haymond, do not diminish Ethereum's value but enhance the overall ecosystem.

Diverse Perspectives on Layer-3 Networks

Patrick McCorry from the Arbitrum Foundation expressed surprise at Boiron's stance, emphasizing the potential benefits of Layer-3 networks in enabling Layer-2 networks to evolve into settlement layers. He suggested that Layer-3 networks could rely on Ethereum as a global ordering service and final arbiter of settlements.

In a related development, Mert Mumtaz, CEO of Helus Labs, echoed Boiron's views by likening Layer-3 networks to centralized servers settling on other centralized servers (Layer-2s) controlled by multisigs. This perspective raises questions about the decentralization and security implications of Layer-3 networks.

Vitalik Buterin's Perspective

Vitalik Buterin, co-founder of Ethereum, initiated the Layer-3 debate in late 2022 by highlighting the distinct role of Layer-3 networks in providing customized functionalities for scaling. He suggested that a third layer on the blockchain should offer unique functions that complement rather than duplicate the capabilities of Layer-2 networks.