According to PANews, the rise in the number of Layer 2 solutions (L2s) in the market has sparked curiosity among many. This increase in L2s and its potential positive impact on users can be attributed to several reasons that have not been deeply discussed before.
One of the most interesting aspects of L2s is the technical experimentation they allow. The real difference between L2s and Layer 1 solutions (L1s) lies in the fact that L2s, which settle on Ethereum, can freely modify their Virtual Machines (VMs) as long as they can prove to L1 that the state transition is valid. Most rollups currently use Ethereum Virtual Machine (EVM) and aim to provide the same experience as Ethereum L1, but at a cheaper and faster rate. However, there has been an increase in rollups using alternative VMs, which offer various benefits such as the ability to write contracts in different programming languages, additional security, privacy, lower fees, or higher throughput. Examples include Arbitrum Stylus, Movement, Aztec, and multiple SVM Rollups.
There are also teams looking to push the limits of EVM on high-performance hardware. MegaETH and Paradigm have conducted excellent research exploring ways to optimize various aspects of EVM. It is expected that EVM rollups will achieve high performance by the end of this year.
Another reason for the rise in L2s is the concept of 'cultural extension,' a term learned from a blog post by Vitalik Buterin. L2s allow the emergence of subcultures with vast resources and form a feedback loop that forces them to learn and adapt to function in the real world. Each successful blockchain has its own identity or use case. For instance, Polygon has achieved success through partnerships with mainstream companies and a high-quality ZK ecosystem. Optimism has a strong cultural interest in traceability financing and token-based governance. Metis focuses on DAOs, and Arbitrum has built a brand around high-quality developer tools and technology.
Just as there is a lot of room for technical innovation, there is also a lot of room for cultural innovation in L2s. Few L2s focus on community building and optimizing the experience for end users. More L2s are expected to emerge that focus on incentivizing specific communities and building better processes for users.
What does all this mean for the end user? They stand to benefit the most. The future will continue to see L2s offering lower fees, faster block times, and optimized experiences. Additionally, applications built for specific VMs, which were previously impossible to achieve on standard EVM, will emerge. Every imaginable community will build a blockchain.