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What’s the role of L1s in the era of L2s?
I interviewed @luigidemeo, Head of DeFi/DevRel at Avalanche to share his perspective.
We also explored Avalanche's endgame vision.
Here's what he had to say: 🧵
L2 solutions promise to scale Ethereum with fast transactions & lower fees, which was the original purpose of L1s.
So, what's the role of other L1s now?
Will they become extinct, evolve, or continue offering unique capabilities?
Below is the Avalanche's perspective from my interview with @luigidemeo on this.
You can read the full AMA on my blog by clicking the link in the tweet below.
Or continue reading the thread for key insights from our conversation.
twitter.com/DefiIgnas/status/1664225739473043457
Luigi doesn’t agree that Ethereum has won the L1 ‘war’.
He warns against concentration risk if all activity settles to Ethereum.
Welcoming multiple L1s provides choice, more fault tolerance and invites competition/innovation at the L1 level.
Interestingly, this is the opposite of what Polygon's Head of Growth, @sourcex44, had shared with me in our AMA.
You can find out why he thinks Ethereum has already won the L1 game in the thread below.
twitter.com/DefiIgnas/status/1648310215492927488
Why does Avalanche have three chains + subnets? Luigi explains:
• C-Chain is EVM compatible for smart contracts with fast finality
• P-Chain is where validation occurs
• X-Chain is a UTXO-based chain used for fund transactions
The vision for Avalanche subnets:
"Subnets enable anyone to build their own blockchain.
They can be customized in terms of permissioning at the validator level, different virtual machines etc.
Many will want their own chains as we are seeing with TSM, Dexalot, DYDX, etc."
On building on subnets instead of L2 or L3:
"L3s and L2s lack composability...
With respect to subnets, there is no reason one cannot deploy an L2 as a subnet, have the validators run the sequencer and now use Avalanche Warp Messaging to communicate to other subnets.”
The Future for Avalanche C-Chain:
"The C chain is the liquidity hub of Avalanche.
As subnets grow, all of the native assets, exchange integrations, etc., on the C chain will be leveraged with Avalanche Warp Messaging."
Luigi introduces AvaCloud by Ava Labs:
"AvaCloud facilitates no-code Web3 blockchain deployments and to bring them to the market faster, cheaper and with lower risk."
"We are endlessly pursuing a world making it as easy as possible to deploy app chains."
twitter.com/avalabsofficial/status/1661380521803362305
On the Avalanche blockchain ecosystem:
"The value proposition for the Avalanche C-Chain is different than other systems. The Primary Network is a 'special subnet'.
C-Chain allows for smart contract deployment with fast finality."
Luigi on Avalanche's endgame:
"Our goal is to provide infrastructure where anyone can build their own blockchain seamlessly.
We have subnets coming from SK Planet, TSM, Bowlero, Gunzilla and many more enterprise and institutional clients."