Close Menu
  • Latest News
    • Bitcoin
    • Ethereum
    • Altcoins
    • Meme Coins
  • Tech
    • Blockchain
    • Security and Privacy
  • Web 3
    • Gaming
  • Legal
    • Legal and Regulatory
    • Adoption
  • Analysis
  • Learn
    • Education
    • Wallets and Exchanges
  • Tools
    • Market Overview
    • Exchange Tool
  • INFO@FREE.CC
What's Hot

Monad Backs Stablecoin Startup Rain for Global Visa Payments

May 14, 2026

Senate Confirms Bitcoin Friendly Kevin Warsh As Fed Chair Ahead Of Clarity Act Vote

May 14, 2026

What Is the CLARITY Act? The US Crypto Bill That Could Reshape Digital Asset Regulation This Week

May 14, 2026
Facebook X (Twitter) Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • Disclosure
Facebook X (Twitter) Instagram
Free.cc (Free Cryptocurrency)Free.cc (Free Cryptocurrency)
  • Latest News
    1. Bitcoin
    2. Ethereum
    3. Altcoins
    4. Meme Coins
    5. View All

    Senate Confirms Bitcoin Friendly Kevin Warsh As Fed Chair Ahead Of Clarity Act Vote

    May 14, 2026

    Exodus slashes Bitcoin holdings by 50% in Q1 2026 – Is BTC’s volatility why?

    May 14, 2026

    ZachXBT Names Teen Behind $19 Million Crypto Theft Who Flaunted It On Instagram

    May 14, 2026

    Analyst Says No Reason for Bitcoin Reversal, Sees BTC Approaching Next Resistance Levels – Here Are His Targets

    May 14, 2026

    Bitcoin, Ethereum and XRP Price Analysis: What’s Coming Next?

    May 13, 2026

    Wells Fargo Boosts Ethereum ETF Holdings in Q1

    May 13, 2026

    Why Market Experts Are Still Predicting A Rise Above $10,000

    May 13, 2026

    Bitmine ETH Holdings Cross 5.2 Million—CEO Announces New Phase For Crypto Markets

    May 12, 2026

    XRP Holds Key Level, But Binance Flow Data Signals Weakening Demand

    May 14, 2026

    Bitcoin Just Entered A Deceptive Territory, Here’s What You Should Know

    May 14, 2026

    XRP Ledger Hits Record High In 10K+ Wallets: Santiment

    May 13, 2026

    Mysterious Bitcoin Whale Transfers $40B After Years Of Silence

    May 13, 2026

    Meme Coin Market Faces Imbalance as Supply Rises, Demand Falls

    April 4, 2026

    Crypto Interest Rising Toward Meme Coin Sector

    January 9, 2026

    Memes Market Cap Adds $10B in Days: Fresh Capital or Dead-Cat-Bounce?

    January 5, 2026

    Meme Coin Market Surges Past $45B as Shiba Inu, PEPE, BONK Stage 54% Price Pump

    January 4, 2026

    Monad Backs Stablecoin Startup Rain for Global Visa Payments

    May 14, 2026

    Senate Confirms Bitcoin Friendly Kevin Warsh As Fed Chair Ahead Of Clarity Act Vote

    May 14, 2026

    What Is the CLARITY Act? The US Crypto Bill That Could Reshape Digital Asset Regulation This Week

    May 14, 2026

    Stables Taps T-0 Network as Asia’s 60% Stablecoin Payment Share Tests USDT Rails

    May 14, 2026
  • Tech
    1. Blockchain
    2. Security and Privacy
    3. View All

    Monad Backs Stablecoin Startup Rain for Global Visa Payments

    May 14, 2026

    Stables Taps T-0 Network as Asia’s 60% Stablecoin Payment Share Tests USDT Rails

    May 14, 2026

    UBOX Taps ClawWorks to Accelerate Independent AI Agent Economics

    May 14, 2026

    UXLINK And Origins Network Partner To Power Scalable AI-Driven Web3 Applications Using Decentralized Computing

    May 13, 2026

    Ripple Shares DPRK Threat Data on Fraud Domains, Wallets, Campaigns

    May 5, 2026

    Digital Asset Security Moves Beyond Keys as Bitgo Adds 5-Layer Checks

    May 1, 2026

    Defillama Confirms April 2026 as Crypto’s Most-Hacked Month With 30 Incidents

    May 1, 2026

    Malicious npm Dependency Linked to AI Assisted Commit Targets Crypto W

    April 29, 2026

    Monad Backs Stablecoin Startup Rain for Global Visa Payments

    May 14, 2026

    Senate Confirms Bitcoin Friendly Kevin Warsh As Fed Chair Ahead Of Clarity Act Vote

    May 14, 2026

    What Is the CLARITY Act? The US Crypto Bill That Could Reshape Digital Asset Regulation This Week

    May 14, 2026

    Stables Taps T-0 Network as Asia’s 60% Stablecoin Payment Share Tests USDT Rails

    May 14, 2026
  • Web 3
    1. Gaming
    2. View All

    NUMINE Joins Outer Ring MMO for the Expansion of Web3 Gaming Experiences

    May 13, 2026

    GMatrixs And MiniverseCore Join Forces To Unlock Web3 Gaming Experience With Cross-Chain DApp, DeFi Applications

    May 11, 2026

    The Identity Crisis of 2026: NFTs, AI Agents and Trust on the Agentic Web

    May 11, 2026

    DTCC’s May 2026 Tokenization Announcement Explained: What It Means for U.S. Securities and Real-World Assets

    May 11, 2026

    Monad Backs Stablecoin Startup Rain for Global Visa Payments

    May 14, 2026

    Senate Confirms Bitcoin Friendly Kevin Warsh As Fed Chair Ahead Of Clarity Act Vote

    May 14, 2026

    What Is the CLARITY Act? The US Crypto Bill That Could Reshape Digital Asset Regulation This Week

    May 14, 2026

    Stables Taps T-0 Network as Asia’s 60% Stablecoin Payment Share Tests USDT Rails

    May 14, 2026
  • Legal
    1. Legal and Regulatory
    2. Adoption
    3. View All

    What Is the CLARITY Act? The US Crypto Bill That Could Reshape Digital Asset Regulation This Week

    May 14, 2026

    Michael Saylor Says the Transparency Act in the US Congress Will Positively Impact Bitcoin! Here Are the Details

    May 14, 2026

    Consensys Urges SEC to Exempt Self-Custody Wallets, Citing Regulatory Gap for 99% of Tokens

    May 14, 2026

    Three men charged in US over crypto wrench attack spree

    May 13, 2026

    Tether launches decentralized local AI using Isaac Asimov’s Psychohistory straight out of Foundation

    May 11, 2026

    Has Donald Trump been a net positive for Bitcoin or created an unbreakable partisan divide?

    May 10, 2026

    BlackRock looks to sidestep Clarity yield issues, filing for two new tokenized money market funds

    May 10, 2026

    Cardano’s Charles Hoskinson says the future of crypto wallets will be inside iPhones and Androids

    May 8, 2026

    Monad Backs Stablecoin Startup Rain for Global Visa Payments

    May 14, 2026

    Senate Confirms Bitcoin Friendly Kevin Warsh As Fed Chair Ahead Of Clarity Act Vote

    May 14, 2026

    What Is the CLARITY Act? The US Crypto Bill That Could Reshape Digital Asset Regulation This Week

    May 14, 2026

    Stables Taps T-0 Network as Asia’s 60% Stablecoin Payment Share Tests USDT Rails

    May 14, 2026
  • Analysis

    Trump’s CEO-filled China visit can decide whether Bitcoin’s $80,000 risk rally survives this week

    May 14, 2026

    Wall Street is buying XRP while Binance traders keep betting against it

    May 13, 2026

    Is a Drop Below $1 Coming Next?

    May 13, 2026

    UB Price Breakout Enters Discovery Phase

    May 13, 2026

    Billions Network Rally Accelerates After Binance Futures Launch

    May 13, 2026
  • Learn
    1. Education
    2. Wallets and Exchanges
    3. View All

    What’s on the Ethereum Roadmap: Glamsterdam, Hegota and Beyond

    March 30, 2026

    What Is Bluesky? The Decentralized Social Media Rival to Elon Musk’s X

    March 27, 2026

    What Is Strategy (MSTR)? The Bitcoin Treasury Company

    February 21, 2026

    What Are Prediction Markets? How Polymarket, Kalshi and Myriad Work

    February 13, 2026

    Coinbase went down for over 5 hours after missing earnings. Bulls still see a path to $300 billion by 2030

    May 8, 2026

    Coinbase cuts 14% of staff as Armstrong ties cost reset to AI and market volatility

    May 6, 2026

    Bitcoin is still in charge

    May 3, 2026

    CLARITY Act stablecoin fight shifts from yield to who captures digital-dollar economics

    April 29, 2026

    Monad Backs Stablecoin Startup Rain for Global Visa Payments

    May 14, 2026

    Senate Confirms Bitcoin Friendly Kevin Warsh As Fed Chair Ahead Of Clarity Act Vote

    May 14, 2026

    What Is the CLARITY Act? The US Crypto Bill That Could Reshape Digital Asset Regulation This Week

    May 14, 2026

    Stables Taps T-0 Network as Asia’s 60% Stablecoin Payment Share Tests USDT Rails

    May 14, 2026
  • Tools
    • Market Overview
    • Exchange Tool
  • INFO@FREE.CC
Free.cc (Free Cryptocurrency)Free.cc (Free Cryptocurrency)
Home»Blockchain»The L2 compromise is broken, it’s time for a better foundation
Blockchain

The L2 compromise is broken, it’s time for a better foundation

October 18, 2025No Comments6 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial.

The second quarter of 2025 has been a reality check for blockchain scaling, and as capital keeps pouring into rollups and sidechains, the cracks in the layer-2 model are widening. The original promise of L2s was simple: scaling up L1s, but the costs, delays, and fragmentation in liquidity and user experience keep stacking up.

Summary

  • L2s were meant to scale Ethereum, but they’ve introduced new problems, while relying on centralized sequencers that can become single points of failure.
  • At their core, L2s handle sequencing and state computation, using Optimistic or ZK Rollups to settle on L1. Each comes with trade-offs: long finality in Optimistic Rollups and heavy computational costs in ZK Rollups.
  • Future efficiency lies in separating computation from verification — using centralized supercomputers for computation and decentralized networks for parallel verification, enabling scalability without sacrificing security.
  • The “total order” model of blockchains is outdated; moving toward local, account-based ordering can unlock massive parallelism, ending the “L2 compromise” and paving the way for a scalable, future-ready web3 foundation.

New projects like stablecoin payments start questioning the L2 paradigm, asking if L2s are truly secure, and are their sequencers more like single points of failure and censorship? Often, they’ll end up taking a pessimistic view that perhaps fragmentation is simply inevitable in web3.

Are we building a future on a solid foundation or a house of cards? L2s must face and answer these questions. After all, if Ethereum’s (ETH) base consensus layer were inherently fast, cheap, and infinitely scalable, the entire L2 ecosystem as we know it now would be redundant. Countless rollups and sidechains were proposed as “L1s’ add-ons” to mitigate the fundamental constraints of the underlying L1s. It’s a form of technical debt, a complex, fragmented workaround that has been offloaded onto web3 users and developers.

See also  Vaulta expands Web3 banking vision with Omnitrove launch

You might also like: Fair launch is the broken promise of crypto | Opinion

And to answer these questions, it’s necessary to deconstruct the entire concept of an L2 to its fundamental components, to reveal a path toward a more robust and efficient design.

An anatomy of L2s

Structure determines function. It’s a basic principle in biology that also holds in computer systems. To decide the proper structure and architecture of L2s, we must examine their functions carefully.

At its core, every L2 performs two critical functions: Sequencing, i.e., ordering transactions; as well as computing and proving the new state. A sequencer, whether a centralized entity or a decentralized network, collects, orders, and batches user transactions. This batch is then executed, resulting in an updated state (e.g., new token balances). This state must be settled on the L1 for security via Optimistic or ZK Rollups.

Optimistic Rollups assume all state transitions are valid, and rely on a challenge period (often 7 days) where anyone can submit fraud proofs. This creates a major UX trade-off, long finality times. ZK Rollups use zero-knowledge proofs to mathematically verify the correctness of every state transition before it hits L1, enabling near-instant finality. The trade-off is that they’re computationally intensive and complex to build. ZK provers themselves can be buggy, leading to catastrophic consequences, and formal verification of these, if feasible at all, is very expensive.

Sequencing is a governance and design choice for each L2. Some prefer a centralized solution for efficiency (or maybe for that censorship power; who knows), while others prefer a decentralized solution for more fairness and robustness. Ultimately, L2s decide how they wanna do their own sequencing.

See also  Stable Sea Expands Tokenized Treasury Access

State Claim Generation and Verification is where we can do much, much better in efficiency. Once a batch of transactions is sequenced, computing the next state is a purely computational task, and that can be done using just a single supercomputer, focused solely on raw speed, without the overhead of decentralization at all. That supercomputer can even be shared among L2s!

Once this new state is claimed, its verification becomes a separate, parallelized process. A massive network of verifiers can work in parallel to verify the claim. Such is also the very philosophy behind Ethereum’s stateless clients and high-performance implementations like MegaETH.

Parallel verification is infinitely scalable

Parallel verification is infinitely scalable. No matter how fast L2s (and that supercomputer) produce claims, the verification network can always catch up by adding more verifiers. The latency here is precisely the verification time, a fixed, minimal number. This is the theoretical optimum by using decentralization effectively: to verify, not to compute.

After sequencing and state verification, the L2’s job is nearly complete. The final step is to publish the verified state to a decentralized network, the L1, for ultimate settlement and security.

This final step exposes the elephant in the room: blockchains are terrible settlement layers for L2s! The main computational work is done off-chain, yet L2s must pay a massive premium to finalize on an L1. They face a dual overhead: the L1’s limited throughput, burdened by its total, linear ordering of all transactions, creates congestion and high costs for posting data. Furthermore, they must endure the L1’s inherent finality delay.

For ZK Rollups, this is minutes. For Optimistic Rollups, it’s compounded by a week-long challenge period, a necessary but costly security trade-off.

See also  Bitcoin long-term holders just stopped selling, but a broken chart signal hides the truth

Farewell, the “total order” myth in web3

Since Bitcoin (BTC), people have been trying hard to squeeze all transactions of a blockchain into a single total order. We are talking about blockchains after all! Unfortunately, this “total order” paradigm is a costly myth and is clearly overkill for L2 settlement. How ironic, that one of the world’s largest decentralized networks and the world’s computer behaves just like a single-threaded desktop!

It’s time to move on. The future is local, account-based ordering, where only transactions interacting with the same account need to be ordered, unlocking massive parallelism and true scalability.

Global ordering of course implies local ordering, but it is also an incredibly naive and simplistic solution. After 15 years of “blockchain”, it is time that we open our eyes and handcraft a better future. The distributed systems scientific domain has already transitioned from the 1980s’ strong consistency concept (which is what blockchains implement) to 2015’s strong eventual consistency model that unleashes parallelism and concurrency. Time for the web3 industry to move on as well, to leave the past behind and follow forward-looking scientific progress.

The age of the L2 compromise is over. It’s time to build on a foundation designed for the future, from which the next wave of web3 adoption will come.

Read more: Web3 is open, transparent, and miserable to build on | Opinion

Xiaohong Chen

Xiaohong Chen is the Chief Technology Officer at Pi Squared Inc., working on fast, parallel, and decentralized systems for payments and settlement. His interests include program correctness, theorem proving, scalable ZK solutions, and applying these techniques to all programming languages. Xiaohong obtained his BSc in Mathematics at Peking University and PhD in Computer Science at the University of Illinois Urbana-Champaign.

Broken compromise Foundation Time
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Monad Backs Stablecoin Startup Rain for Global Visa Payments

May 14, 2026

Stables Taps T-0 Network as Asia’s 60% Stablecoin Payment Share Tests USDT Rails

May 14, 2026

UBOX Taps ClawWorks to Accelerate Independent AI Agent Economics

May 14, 2026

UXLINK And Origins Network Partner To Power Scalable AI-Driven Web3 Applications Using Decentralized Computing

May 13, 2026
Add A Comment
Leave A Reply Cancel Reply

Top Posts

Bitcoin Price is Plunging! What’s Driving the Drop? Is it Heading Back Below $80,000?

January 29, 2026

Bitcoin difficulty falls to 135.59T – But THESE 3 miner signals warn of stress

April 20, 2026

Stay ahead with the latest crypto news, market updates, blockchain insights, and trends. Your trusted source for everything happening in the digital asset world.


We're social. Connect with us:

Facebook X (Twitter) Instagram Pinterest YouTube
Top Insights

Monad Backs Stablecoin Startup Rain for Global Visa Payments

May 14, 2026

Senate Confirms Bitcoin Friendly Kevin Warsh As Fed Chair Ahead Of Clarity Act Vote

May 14, 2026

What Is the CLARITY Act? The US Crypto Bill That Could Reshape Digital Asset Regulation This Week

May 14, 2026
Get Informed

Subscribe to Updates

Get the latest creative news From Free.cc directly in your Inbox!

  • Contact
  • Privacy Policy
  • Terms & Conditions
  • Disclosure
© 2026 free.cc - All rights reserved.

Type above and press Enter to search. Press Esc to cancel.