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Offchain Labs Co Founder Sets the Stage for L3s with Arbitrum

Polygon, Arbitrum, and Optimism, among other Layer 2 scaling solutions, are enhancing various aspects of Layer 1 blockchain networks such as decentralization, security, and interoperability. Meanwhile, third-layer networks are customizing trends and advancements for a broader blockchain ecosystem with application-specific paradigms. In a recent interview with TheNewsCrypto, Ed Felten, co-founder and Chief Scientist of Offchain Labs, shared insights on Arbitrum’s role in the emerging third-layer era, future use cases for ARB, and predictions for GameFi.

Second-layer solutions have gained traction in the blockchain space, but their roles are also under scrutiny. How does Arbitrum differentiate itself from other solutions? What unique aspects does Offchain Labs bring to this competitive field?

EF: Offchain Labs distinguishes itself by offering Arbitrum, a second-layer solution built on Ethereum. Ethereum boasts a vibrant developer and user community, and we aim to be a part of this ecosystem. Arbitrum stands out as one of the most mature second-layer solutions, featuring a secure, decentralized, battle-tested technology stack. Additionally, we’ve successfully built a robust Arbitrum community, crucial for long-term success.

Arbitrum offers significant advantages in GameFi. How does Offchain Labs redefine this space?

EF: GameFi is rapidly evolving within the blockchain sector, and Arbitrum is well-positioned to support its growth. We provide game developers with a mature and high-performance platform. Arbitrum excels in security, decentralization, and boasts a battle-tested infrastructure. Furthermore, through collaborations and adapting to various scenarios, Arbitrum has accumulated valuable experience, contributing to its strength.

Ethereum dominates Layer 1 in the blockchain sector. Do you foresee other Layer 1 chains sharing this space with Ethereum?

EF: Ethereum holds a dominant position in the blockchain sector and will likely continue to do so. However, as second-layer solutions and third-layer chains become more prominent, Ethereum’s role will evolve. Vitalik Buterin has discussed Ethereum’s future as a secure base for Layer 2 and Layer 3 chains. Ethereum will provide security features for technologies like Arbitrum to achieve scalability and cost reduction. As adoption grows, cost efficiency becomes increasingly crucial, maintaining Ethereum’s pivotal role in the ecosystem.

In the blockchain industry, the importance of reducing costs is significant, especially considering potential future adoption. How do you plan to address this critical issue?

EF: As scalability concerns persist on Ethereum’s L1, L2 solutions have emerged, balancing scalability with L1 security. In this context, how would you describe the role of L3?

EF: While second-layer solutions like Arbitrum improve scalability and cost efficiency, third-layer chains elevate customization to a new level. Chains like Orbit provide customized options to meet specific project needs, such as launching their token economies or unique features. Additionally, third-layer chains enable projects to integrate closely with specialized oracles, catering to applications requiring specific data needs.

They also offer greater control over infrastructure and operations, making them a versatile choice for projects seeking high customization. Ultimately, third-layer chains provide the freedom to experiment and design blockchain networks tailored to specific needs.

How do you envision the future of third-layer chains? What exciting developments lie ahead?

EF: The future of third-layer chains holds exciting possibilities. We’re actively working to transition Stylus technology into production, with ongoing security audits and mainnet releases. We’re also making validators more permissionless and exploring how to capture MEV value within the ecosystem. Decentralizing the sequencer is also a key aspect of our roadmap. Furthermore, partnerships with projects like Espresso Systems are turning these advancements into reality. We believe third-layer chains will continue to expand and innovate, offering diverse options for customized blockchain solutions.

Disclaimer: The information provided in this interview article is for informational purposes only. It is not intended as investment advice, financial guidance, or specific decision-making advice. Readers are encouraged to conduct their research.

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