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When Ethereum (ETH) co-founder Vitalik Buterin announced the completion of the long-awaited merge in September 2022, efficiency was key to blockchain innovation. In recent years, scalability has overtaken efficiency as the most pressing of the “Big 5” challenges currently facing Web3.
Prominent Layer 1 chains are now being replaced by a new wave of Layer 2 solutions that promise to push the blockchain ecosystem to new heights. However, unlike the unified efforts that drove the merge, this latest phase of blockchain development, referred to as the “surge” in the Ethereum space, presents a series of problems. A new scalability paradigm led by the ever-expanding L2 galaxy has resulted in a fragmented blockchain ecosystem featuring multiple chains, each with its own rules, tokens, and transaction fees.
For some, participating in capitalism means believing that competition creates success. However, when it comes to blockchain, more is not always better. Just as the technical shortcomings of the early internet made it difficult for beginners to navigate websites, the complexity of managing multiple blockchain layers poses significant challenges for users.
If you’re managing Web3 for mass adoption, it’s time to ask, “How many layers is too many?”
Challenges of a fragmented blockchain ecosystem
As more layers are piled on the blockchain cake, challenges continue to arise for both users and developers in the form of inhibiting usability and stifling innovation. The Wild West of L2 ultimately feels positive, but as more complexity is piled on top of the user experience, there is a risk that slicing the blockchain cake will become nearly impossible.
Onboarding to Web3 can be a daunting task in itself, so juggling different wallets, tokens, and fee schedules across chains to perform simple tasks can result in a substandard or It can even be difficult. For many, the fragmentation of the ecosystem creates very high barriers to entry.
The struggles faced by developers are very similar. The complexity of working across multiple layers can slow build times and increase development costs. The ever-increasing lack of interoperability between chains further complicates the scope of projects, especially for teams looking to build cross-chain applications. In the current L2 sector, progress is easily hindered when developers feel the need to navigate complex landscapes.
Layer 2: Missing Potential
Of course, this layer cake approach to scalability is not without merit. There is a rhyme and reason to the current disjointed L2 constellation system dominating the blockchain sector.
In theory, L2 solutions offer significant benefits, including increased scalability and speed. Offloading transactions from L1 to L2 means increasing the overall amount of transactions that can be processed at L1. With further responsiveness, L2 could enable faster and more cost-effective operations, increased security, and an additional layer of protection for sensitive transactions.
However, as we have seen, these advantages may only outweigh the disadvantages in the long run. Fragmentation creates a complex web that can feel overwhelming, especially when the L2 solution landscape continues to expand and a clear solution remains elusive.
unified approach
Fortunately, the challenges posed by L2 racing have a promising solution: chain abstraction. By removing blockchain’s complexity and overarching technology that always hinders usability, chain abstraction can preserve the broad benefits of decentralized technology while lowering the barrier to entry for general consumers.
Chain abstraction, a solution that many mass adoption advocates are already championing, allows you to create an integration layer that communicates with multiple blockchains and simplifies user interaction. This approach allows users to manage assets and perform transactions without having to understand the complexity of each underlying layer.
Of course, the chain abstraction does not exist in isolation. That’s where omnichain infrastructure comes into play. As a practical application of chain abstraction, omnichain infrastructure expands on that concept by enabling the creation of a cohesive, interoperable ecosystem that facilitates seamless interaction between different blockchains. Let’s push it further.
Omnichain infrastructure enables simplified user-centered design by powering fragmentation solutions such as seamless cross-chain transactions and secure and efficient validation while promoting developer flexibility. , making blockchain interactions more intuitive and efficient.
Multichain today, omnichain tomorrow
So where do we go from here?
While it is true that the proliferation of L2 has ushered in an era of fragmentation for web3, there are still complexities within blockchain as a whole. Layers exist everywhere within and outside the L1 and L2 paradigms. Ultimately, this disruption will only become more prevalent as traditional organizational and consumer interests lead to an explosion of new innovations, new platforms, and new needs.
This brings us back to the first question. Because for the majority of new users, anything beyond a single integration layer may simply be too much.
If scalability is as important as most developers know (spoiler alert, it is), then the potential of omnichain infrastructure to aid in the path to mass adoption cannot be underestimated. You can power even your most ambitious initiatives by interconnecting products and blockchain, integrating data to create seamless experiences, and providing easy access to the power of Web3.
charles wayne
Charles Wayne is a Web3 entrepreneur and co-founder of Galxe, Web3’s largest on-chain distribution platform. Galxe stands out by engaging millions of users across a robust network of blockchains, contributing significantly to the growth and advancement of major players in the industry. Prior to co-founding Galxe, Charles led DLive to become the world’s largest blockchain-based live streaming platform, culminating in its acquisition by BitTorrent, and continued as Vice President of Interactive Entertainment. Supported by industry giants such as Multicoin Capital, Dragonfly Capital, and Coinbase Ventures, Galxe’s efforts introduce people interested in cryptocurrencies to the practical applications of Web3, foster community cohesion, and connect users with It reflects the company’s dedication to unlocking new economic potential for both of its partners. Charles holds a Bachelor of Science degree from the University of California, Berkeley.
