Are Layer 2s Failing Ethereum? A New Proposal Advocates for Native L2s - Ep. 736
Nov 19, 2024
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Martin Köppelmann, co-founder and CEO of Gnosis, dives into the urgent need for native rollups to fix Ethereum's scalability woes. He critiques current layer 2 solutions, arguing they fall short on security and composability. His bold proposal includes 128 Ethereum-native rollups utilizing zero-knowledge proofs for enhanced privacy and speed. The conversation also tackles potential threats to existing L2s and whether the community is ready to embrace this transformative approach, all while ensuring that these innovations align with Ethereum's core principles.
Martin Köppelmann critiques current layer 2 solutions for their limitations in security and composability, advocating for 128 Ethereum-native rollups to enhance scalability.
The proposal emphasizes the advantages of zero-knowledge rollups for rapid transaction verification, aiming to minimize delays and improve liquidity across Ethereum and rollups.
Deep dives
The Proposal for Native Rollups
The concept of native rollups involves Ethereum deploying rollups that are fully integrated and synchronized with its core blockchain. This approach seeks to enhance developer experience by eliminating the current issues of loosely connected rollups that act independently, leading to fragmentation of liquidity and trust. For instance, when launching a new rollup today, developers must create their own liquidity pools and replicate the ecosystem, which complicates asset trading and market creation. By adopting native rollups, assets can seamlessly transition between Ethereum and rollups, thus consolidating liquidity and fostering a more cohesive ecosystem.
Benefits of Zero-Knowledge Rollups
The proposal advocates for utilizing zero-knowledge rollups (ZK rollups) instead of optimistic rollups, emphasizing their speed and efficiency in transaction verification. With ZK rollups, once a state is proposed, the correctness of that state can be confirmed much more quickly compared to optimistic rollups, which require a challenge period. This rapid proof generation minimizes delays, allowing for nearly instantaneous transactions between the rollup and Ethereum blockchain, which could be achieved within the current block time. The implementation of specific hardware to optimize proof generation could further enhance performance, potentially achieving proof times in seconds.
Enhancing Composability and User Experience
The integration of native rollups is expected to significantly improve composability within the Ethereum ecosystem, enabling developers to create applications that can conduct transactions across both the layer one and layer two seamlessly. This means actions like bridging assets or executing trades can happen rapidly without the usual delays currently experienced due to fragmented ecosystems. For example, users could directly engage in trades with assets that cross over from layer one to layer two in a single action, improving user experience. Furthermore, the availability of unified liquidity pools on layer one would allow multiple rollups to access deeper liquidity, reducing inconsistencies in asset valuation across different platforms.
Martin Köppelmann, co-founder of Gnosis, has proposed that Ethereum should have native rollups—a vision aimed at addressing scalability and decentralization.
Köppelmann critiques the current state of layer 2 solutions, highlighting their limitations in fully inheriting Ethereum’s security and composability.
He proposes a bold alternative: 128 Ethereum-native rollups designed to expand block space, strengthen alignment with Ethereum’s core principles, and ensure long-term viability for developers and users.
Plus, Martin tackles the controversies: Are L2s parasitic? Could native rollups spell the end for existing solutions? And why should they rely on zero-knowledge proofs instead of Optimism?
Show highlights:
Whether the Ethereum scaling roadmap is accomplishing its goals
Why based rollups are not a full solution, according to Martin
What Martin proposes instead
Why Martin is proposing these rollups to be ZK-rollups instead of optimistic
Whether the proposed solution would focus on privacy
What it is about chain abstraction that Martin doesn’t like
How he envisions that these native rollups will solve many composability issues across L2s
Whether the community has embraced this proposal and how likely it is to be implemented
What would happen to current L2s if native rollups get implemented
Why despite being against the current state of L2s, Martin says that they are not parasitic to Ethereum
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