Simple thoughts on L2 competing with solana

Author: Lanhu Notes Source: X, @lanhubiji

Layer 2 solutions such as Arbitrum, Optimism and zkSync have the problem of over-imitating Ethereum L1 DeFi, resulting in path dependence. However, L2 has unique characteristics that require a new path for high-performance applications. The market demand for L2 is not to copy Ethereum L2 again, but to create a new L2 route.

These new routes mainly involve high-frequency applications, just like Solana’s efforts on DePin. The past trajectory will not lead to an explosion. The Solana ecosystem has a good grasp of this and is related to the joint investment institutions of Helium and Solana. This can be investigated by yourself. Ultimately, new attempts will spark new narratives and excite the market.

Next, how do Arbitrum, Optimism and zkSync compete with Solana? The first priority is not to focus too much on copying Ethereum L1 DeFi. This is important, but it is not a solution.

What’s more important is to create a new narrative. We should focus on finding breakthroughs in Web3 games, AI, DePin and other fields. At the same time, we hope that developers will not reinvent the wheel, actively open up new battlefields, and vigorously develop DePin when necessary.

In addition, Arbitrum, Optimism and zkSync need to tilt their most valuable economic support (tokens) to projects and developers in new fields. The L2 ecosystem has a late-mover advantage in the token economy and can design an ecological incentive plan that is superior to previous public chains.

Solana's breakthrough is a good example for Arbitrum, Optimism and zkSync, and they should learn more experience instead of looking down upon it.

If after the Cancun upgrade in the first half of next year, Arbitrum, Optimism and zkSync can launch several popular applications in Web3 games, AI, DePin or other fields, Things are expected to change.

The real competition between L2 and Solana will officially begin in the second half of next year. Who can stand out will be basically visible in the next two years. Although the cycle is long, the jury is still out.

The Ethereum ecological network should also be grateful for the innovative breakthroughs in BTC and Solana. Without this catfish effect, the Ethereum network could become too comfortable. The stimulation of BTC and Solana ecology is enough to attract the attention of the Ethereum community. The most important thing is not to look down upon or be hostile, but to learn how other ecologies break the situation. Only in this way can the developers and communities of the Ethereum ecosystem maintain resilience and deal with the many FUDs in history.