Degen Chain, which operates as a layer 3 blockchain on the Base network, has attracted investors and traders with its impressive trading volume, approaching $100 million within just 24 hours of its launch. Since its launch four days ago, the network has seen an influx of over 272,000 unique transactions, with over 7,500 contracts and 2,300 tokens created. However, concerns have been raised as a large number of tokens on the platform have been linked to triggers and fraud, highlighting the speculative and volatile nature of the crypto space.
Adjusted for DEGEN tokens
Degen Chain is intricately designed for the DEGEN token, leveraging layer 2 protocols to speed up transactions and address specific applications. It functions as a layer 3 blockchain, offering customization and application specificity, and leverages the layer 2 network to efficiently perform tasks such as payments, gaming transactions, and other functions. The DEGEN token will serve as the native gas token on-chain for toll payments, facilitating various experiments such as tips, community rewards, payments, and gaming. Tokens such as Degen Swap (DSWAP) and Degen Easter Eggs (DEE) command significant valuations within the network, with DSWAP valued at over $14 million and DEE valued at $3.5 million.
Discussion of the role of Layer 3 networks
Although Degen Chain has experienced rapid user adoption and increased transaction volumes, critics have questioned the need for a layer 3 network like Degen Chain when scaling Ethereum, and the mainnet They are concerned that this could lead to a loss of value. Polygon CEO Marc Boiron claims that L3 primarily serves to transfer value from Ethereum to L2 built on it, and does not play a significant role in extending the existing network. Conversely, proponents within the crypto community have cited benefits such as low-cost native bridging from L2, efficient on-chain proofing, custom gas tokens, and special state transition capabilities that complement L2 to support L3. claims the benefits of
controversy and rebuttal
Boisron’s comments regarding the role of layer 3 networks in Ethereum’s expansion sparked controversy in the blockchain space. While some disagree with Boilon’s position, arguing that his L2 of Ethereum inherently brings value to the mainnet, he argues that the value of L2 does not directly equal the value of Ethereum. I emphasize that there is no. One concern is that if a large number of L3s settle on L2, the value and security of Ethereum could decline. Polygon remains focused on scaling Ethereum and ensuring a fair distribution of value between L2 and Ethereum.
Different views and future prospects
Amid the debate over the effectiveness of Layer 3 networks, Ethereum co-founder Vitalik Buterin and others have argued that Layer 3 networks do not directly compete with L2, but offer unique capabilities that complement it. recognizing. Advantages of L3 include specialized state transition capabilities, low-cost bridging from L2, custom gas tokens, and efficient on-chain proofing. As the debate continues, the trajectory of layer 3 networks like Degen Chain in shaping blockchain scalability and application development remains unclear and awaits further evolution and exploration.
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