Ethereum's L2 Solutions Address Core Blockchain Challenges

According to PANews, with Ethereum's Layer 1 (L1) mainnet gas fees reaching a five-year low, many projects are reconsidering deploying on L1. This raises questions about the core issues that Layer 2 (L2) solutions aim to address. The blockchain trilemma, as explained by Ethereum co-founder Vitalik Buterin, involves a trade-off between security, decentralization, and scalability. L2 solutions are designed to tackle these challenges by maintaining security through state summaries on L1, striving for decentralization in transaction ordering, and achieving scalability off-chain. Various L2 solutions, such as Optimistic Rollups and Zero-Knowledge Rollups, are well-known. However, the Based-Rollup approach, initially proposed by Buterin and promoted by projects like Taiko, offers a different perspective. It emphasizes reducing the power of L2 sequencers by allowing Ethereum L1 to handle transaction ordering, thus limiting the influence of L2 sequencers. In a typical Optimistic Rollup system, sequencers have significant power, deciding transaction order and potentially profiting from Miner Extractable Value (MEV). Different L2 solutions handle MEV differently; for instance, Arbitrum advocates for fair treatment, while Optimism views MEV as a free market activity and taxes it. Despite these differences, L2 sequencers hold a prominent position. Based-Rollup proposes a three-step process: L2 searchers package transactions and send them to L2 block builders, who then construct blocks. L1 searchers include these L2 blocks in their L1 blocks. This approach allows L1 searchers and L2 builders to be the same entity, utilizing L1 resources to enhance L2 security. Taiko, which has been developing this approach for a year, is preparing for its token unlock. It has also introduced a new concept called Based Booster Rollup (BBR), which can serve as an L1 mirror. Further analysis of Booster Rollup will be explored in future discussions.