Long Push: The Opportunities and Challenges of the L3 Era with the Launch of Arbitrum Orbit

Arbitrum Orbit Launch: Opportunities and Challenges in the L3 Era

Original Author: Haotian | CryptoInsight

Original Source: Twitter@tmel0211

While Polygon and BNB Chain are leading the charge for Layer 2, Arbitrum has taken a stumble and brought everyone into the Layer 3 era with Arbitrum Orbit.

@OffchainLabs quietly released Arbitrum Orbit, allowing developers to customize and develop their own L3 chain based on the Arbitrum Nitro Stack.

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Is this move by Arbitrum premature? What is the difference between this and the Optimism Stack? What impact will it have on the ecosystem? Let’s discuss while wishing everyone a happy Dragon Boat Festival.

Arbitrum Orbit is a scalability solution based on the Arbitrum Rollup for the settlement layer. Developers can build their own application chains based on existing Arbitrum L2 chains (One, Nova, test Goerli), with high autonomy in consensus mechanism, governance model, gas fee coin selection, economic model and other aspects. It can be a specific application chain or an open ecological chain, highly customized, giving developers more flexibility and autonomy.

After researching, I always have the feeling that the underlying infrastructural revolution is too fast and the upper-layer application ecology cannot keep up. The OP Stack adopts a modular architecture, highly open source, allowing third-party L1 chains to copy their own fast channels into L2, and they are all in the ecosystem of the optimism superchain in the end; The Arbitrum Stack allows developers to extend customized exclusive application chains based on the security foundation of its L1 and L2. Essentially, they are trying to block the ecological strategic advantages.

The competition between chains ultimately boils down to the competition for developer resources. The most efficient way to achieve this goal is to promote it through open solutions and standardized tools. The OP Stack promotes L1 upgrade to L2 in a more progressive and reasonable way, while Arbitrum Orbit feels too advanced in my personal opinion:

1) Allowing developers to design their own gas fee token mechanism gives some “short, flat and fast” projects the rationality to issue coins;

2) It destroys the natural advantages of large ecological applications’ combination.

Overall, Arbitrum Orbit is a double-edged sword. On the one hand, it gives some top applications in the Game and Social fields the possibility of soaring to the clouds. On the other hand, due to the technological innovation being ahead of application development, it is inevitable that some short-term troublemakers will take advantage of it. In comparison, I prefer Uniswap’s iterative development blocking pattern, which is driven step by step by the market and applications. When technology is divorced from actual market demand, it will also breed a kind of original sin.

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