How to build your own Layer 2? Experience from Co-founder & CEO @ Taiko, Daniel Wang
+ event you can't miss😉
GM and happy Monday frens🖖
This week Daniel Wang, Co-founder & CEO @ Taiko, shares his insight on building Layer 2, the necessity of alternative VMs & future of the blockchain infrastructure.
Be sure to listen to the full version here:
Grab a sneak peek below👇
🥁Taiko, as a type one rollup, prioritizes equivalence to Ethereum. Why this choice and why it’s important to be Ethereum equivalent?
We've chosen this challenging path because it simplifies our go-to-market strategy in the long run. While it's technically demanding, alternatives bring their own complications. For instance, creating something like EVM might be simpler technically but complicates the go-to-market phase. It involves negotiations with wallet providers like MetaMask, investment in mobile wallet versions, and infrastructure collaborations.
In our case, opting for the technically complex path now aims to reduce the decision-making burden for potential Taiko dApps, offering a more accessible and efficient solution. This way, we lower the entry barriers for Web3 developers.
📜Our latest podcast featured Cartesi discussing the limitations of EVM. When is EVM the best choice, and when to consider alternative VMs?
We believe that to attract developers and dApps effectively, we should align with the existing developer community, which predominantly uses EVM. Newcomers are more likely to start building on Ethereum because transitioning to a new platform is a significant decision. Once they've established their presence on Ethereum and need to scale, we introduce them to Taiko.
It's about meeting developers where they are and providing a seamless pathway for them to explore Taiko when they're ready. This approach seems valid for the next 2 to 5 years. If a superior language or platform emerges, it might alter the landscape, but currently, Ethereum is the starting point for many developers.
🔥Epic ETH Infra Day this week
We’re having a one-day event dedicated to Ethereum infrastructure during Devconnect, on November 15, this Wednesday!
🎤Speakers and panelists:
Nebojsa Urosevic — Co-Founder SVP of R&D @ Tenderly
Brecht Devos — Co-Founder @ Taiko
Dmitry Zhelezov — Co-Founder @ Subsquid
Vince Yang — Co-Founder @ zk.Link
Brandon Truong — Co-Founder @ ZetaChain
Bogdan Habic — CTO @ Tenderly
Raul Jordan — Founder @ Prysm & Senior Software Engineer @ Offchain Labs
DJ Lee — CTO & Founder @ Kroma
And many more great speakers
🧠We are organizing curated networking with Web3 experts. Prepare to get consultations from 15 industry experts. You'll have the opportunity to pick their brains, collaborate on ideas, or simply expand your network in 15-minute sessions!
☄️We are almost fully booked — be sure to book a ticket below:
⏰Do you think the infrastructure is ready to onboard the new dApps or do we still need to solve some challenges?
For small-scale prototyping, it's doable, but onboarding millions of active users? I don't think Layer 2 is ready for that, not even in the next two years. It'll take more time to ensure Layer 2 solutions are not only high-performing and cost-effective but also decentralized and censorship-resistant.
Many current Layer 2 offerings are still quite centralized. If you're building a social app that values freedom of speech, it's tough to rely on current Layer 2 tech. Account abstraction, which is crucial for user experience, is also not fully ready.
In summary, it's not quite there yet, but that's where we see the opportunity. Layer 2 will play a pivotal role in overall scalability.
🌐Why is it so important to be decentralized if you're building Layer 2 or some other protocol?
Decentralization and security are top priorities in DeFi. While Layer 2 offers scalability and cost-efficiency, it shouldn't compromise security. A seamless experience on Layer 1, like Uniswap, contrasts with concerns over withdrawals and confirmations on centralized Layer 2.
In the future, most Ethereum Layer 1 transactions may become roll-ups, bundling Layer 2 actions. This could increase Layer 1 fees, but it's justified, as roll-ups can offset costs with Layer 2 activities.
However, attracting and retaining users amidst higher fees is a challenge. DeFi will shift to Layer 2, but it's not ready. Security and decentralization are non-negotiable. It's worth paying slightly more to protect assets.
Listen to the full vesrion of the podcast here:
All right, that’s it for today! 👋 But wait…
You didn’t say “gm” on Twitter! Let’s catch up there for daily insights.
Sending growth your way,
Epic Web3