Polygon’s CEO Marc Boiron Discusses Layer-3 Network Risks
Polygon’s CEO, Marc Boiron, recently discussed the potential risks associated with developing layer-3 protocols. He emphasized that the company is not considering these protocols due to the potential security threats they pose to Ethereum.
Boiron’s comments were prompted by the early success of Degen Chain, a layer-3 network running on the scaling solution Base, which has received backing from Coinbase. Layer-3 protocols enhance scalability by building on Layer-2 infrastructure, allowing developers to craft application-specific blockchains to suit their needs.
About Degen Chain
Degen Chain is a Layer-3 network built using Arbitrum Orbit for the DEGEN token. The digital asset quickly became the main community token among users of Farcaster, a rapidly expanding web3 social media platform.
Since its launch on March 28, Degen Chain has attracted significant attention and activity within the crypto industry. The network has seen a surge of over 200% in the past week. As of March 30, it has facilitated the bridging of more than $30 million and powered over 3.5 million transactions.
Community Debates on Layer-3
Degen Chain’s early success has sparked debates within the crypto community, with differing views about the network. Boiron asserted in a March 31 post on X (formerly Twitter) that layer-3 networks divert value from Ethereum onto the layer-2 platforms hosting them. Such a trajectory, he believes, does not align with Polygon’s commitment to Ethereum’s scaling, which the company already addresses through its proof-of-stake (PoS) and zero-knowledge Ethereum Virtual Machine (zkEVM) chains.
Boiron also highlighted the potential negative impacts of layer-3 adoption, noting their minimal performance enhancements and the possible threat to Ethereum’s security. He stated: “If all L3s settled to one L2, then Ethereum would capture basically no value and, thus, Ethereum security would be at risk.”
He further explained that if Ethereum earns no fees and has no prospect of earning fees other than a tiny amount from this one L2, then the value of ETH will drop. If it’s clear that it’ll continue to drop because there’s no economic future for it, validators will no longer be willing to hold ETH and, therefore, no longer be willing to secure the network.
In contrast, blockchain expert Cygaar pointed out that layer-2 networks are not yet mature and have yet to inherit Ethereum’s security level due to existing challenges like network centralization, upgradeable bridge contracts, and developing proving systems. Therefore, he argued that integrating layer-3 networks atop layer-2s could increase risks and compromise the security of these blockchain networks.
