In recent times, traditional Layer 1 public chains such as Solana and Avax have made significant progress. However, the Ethereum Layer 2 solutions like Arbitrum, Optimism, and zkSync seem to be too comfortable in their position.
The main issue with Arbitrum, Optimism, and zkSync is that they have tried to replicate the DeFi ecosystem of Ethereum Layer 1, leading to a dependency on the same path. However, Layer 2 has its own unique characteristics and should explore new paths suitable for high-performance applications. The market’s demand for Layer 2 is not another shadow of Ethereum Layer 2, but a completely new route.
How can Layer 2 compete with Solana?
These routes are high-frequency applications. Just like Solana’s efforts on Depin, repeating the same path will not lead to a breakthrough. Solana’s ecosystem has grasped this point well, and it may be related to the common investment institutions of Helium and Solana. You can investigate this further. Ultimately, new attempts bring new narratives, and new narratives ignite the market.
Further reading:
What is DePin? A new data economy led by decentralized hardware
Next, how can Arbitrum, Optimism, and zkSync compete with Solana? First, the focus should not be on replicating Ethereum Layer 1 DeFi. Although it is important, it is not the ultimate solution.
The most important thing is to explore new narratives. The key is to find breakthroughs in Web3 games, AI, Depin, and other areas. It is also expected that developers will not create old wheels and strive to open up new battlefields. Alternatively, developing Depin vigorously is also a pathway.
In addition, Arbitrum, Optimism, and zkSync need to tilt their most valuable economic support (tokens) towards new projects and developers in new fields. Layer 2 ecosystems have a latecomer advantage in token economics and can design better incentive programs than previous public chains.
Learning from Solana instead of looking down upon it
Solana’s breakthrough is a good demonstration for Arbitrum, Optimism, and zkSync. It is important to learn from it rather than underestimate it.
If after the KanKun upgrade in the first half of next year, Arbitrum, Optimism, and zkSync can produce several popular applications in Web3 games, AI, Depin, or other fields, there is a chance for new changes to occur.
The real competition between Arbitrum, Optimism, zkSync, and Solana will truly begin in the second half of next year. The results for the next two years can be seen from that. The cycle is long, and there is no conclusion yet.
The Ethereum ecosystem should also thank the innovations and breakthroughs on BTC and Solana. Without this catfish effect, the Ethereum network would have been too comfortable. The stimulation from BTC and Solana’s ecosystems is enough to draw the attention of the Ethereum community. The most important thing is not to look down upon or antagonize, but to learn from the breakthroughs of other ecosystems. Only in this way can we continue to move forward. Ethereum has experienced multiple FUDs in its history, and we believe in the resilience of Ethereum ecosystem developers and the community.
(Disclaimer: The above is just one opinion and should not be taken as investment advice.)
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