The blockchain space is currently witnessing two dominant scaling narratives: Ethereum Layer 2 solutions and emerging high-performance public chains like Aptos and Sui. Both aim to solve the long-standing blockchain trilemma—decentralization, security, and scalability—but they approach it differently. With Layer 2 solutions gaining significant traction and new public chains entering the scene, many are wondering which approach will ultimately prevail.
Understanding the Core Challenges
Blockchain’s "impossible trilemma" suggests that it’s difficult to achieve decentralization, security, and scalability simultaneously on a single chain. Ethereum, for example, excels in decentralization and security but struggles with scalability, resulting in lower transactions per second (TPS). Previous high-performance chains like Solana improved scalability but faced frequent outages, raising security concerns.
Both Layer 2 solutions and new public chains like Aptos and Sui aim to optimize these three aspects, driving the next wave of blockchain innovation.
Layer 2 refers to off-chain scaling solutions, primarily for Ethereum. These protocols reduce the load on the mainnet by processing transactions off-chain, thereby improving overall network scalability. TPS is a critical metric for evaluating blockchain performance. While Ethereum’s mainnet handles around 15 TPS, Layer 2 solutions like Arbitrum have achieved peaks of 100 TPS. In contrast, Aptos claims a theoretical TPS of over 100,000, though current real-world performance is around 10 TPS. Solana, another high-performance chain, typically processes over 2,000 TPS.
Ecosystem Development and Application Scenarios
When it comes to ecosystem growth, Layer 2 solutions currently hold a significant advantage. According to data from DefiLlama, Arbitrum holds a 4.36% share of the total value locked (TVL) in decentralized finance, while Optimism holds 1.81%. Aptos, by comparison, ranks 39th with a TVL of approximately $36 million—60 times smaller than Arbitrum’s $2.2 billion. Even Solana, which gained popularity in previous years, has a TVL of $286 million, only one-eighth of Arbitrum’s.
Arbitrum’s ecosystem includes well-known projects such as the derivatives DEX GMX, the omnichain lending protocol RDNT, and the gaming ecosystem Treasure DAO. These projects are known for their innovative mechanisms and strong community support. In contrast, Aptos’s ecosystem is still in its early stages. Although it attracted many projects at launch, most lack originality and substance. While some established projects have expanded to Aptos, native innovations remain scarce.
That said, Aptos is still young, and its ecosystem may evolve over time.
Technical Architecture: Layer 2 vs. New Public Chains
New public chains like Aptos and Sui introduce several technical innovations:
- Move Programming Language: Aptos uses Move, a language designed for blockchain development. Compared to Solidity, Move offers greater flexibility and ease of use. Compared to WebAssembly (WASM), it is more specialized and secure.
- Parallel Execution Engines: Aptos utilizes Block-STM, a parallel execution engine for smart contracts. This allows multiple transactions to be processed simultaneously, significantly improving throughput. Imagine Ethereum as a single-lane road where all vehicles must queue, while Solana and Aptos are multi-lane highways. Aptos offers more flexibility in lane usage, enhancing reliability and performance.
Layer 2 solutions primarily rely on rollup technology, which processes transactions off-chain and submits proofs to the mainnet. The two main types of rollups are:
- ZK-Rollups: These use zero-knowledge proofs to validate transactions without revealing underlying data. This method supports near-instant finality and enhanced privacy.
- Optimistic Rollups: These assume transactions are valid by default and rely on a challenge period during which fraudulent transactions can be disputed. While compatible with Ethereum Virtual Machine (EVM), they require a one-week withdrawal period, which impacts user experience.
Currently, Optimistic Rollups dominate the market due to their EVM compatibility, with Arbitrum and Optimism as leading examples. However, ZK-Rollups are favored for their superior security and privacy, with projects like zkSync and StarkNet gaining attention.
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Community and Governance Mechanisms
Layer 2 protocols often issue governance tokens, allowing holders to participate in decision-making through staking and voting. However, recent controversies have highlighted transparency issues. For instance, Arbitrum’s initial governance proposal, AIP-1, faced community backlash over the allocation of 750 million ARB tokens (worth over $1 billion) to the Foundation without clear prior discussion. The proposal was ultimately rejected, and a revised version was introduced.
Aptos and other new public chains have maintained relatively stable governance models, though they are less decentralized compared to Ethereum-based solutions.
Frequently Asked Questions
What is the blockchain trilemma?
The blockchain trilemma refers to the challenge of achieving decentralization, security, and scalability simultaneously. Most blockchains prioritize two of these attributes at the expense of the third.
How do Layer 2 solutions improve scalability?
Layer 2 solutions process transactions off-chain and periodically submit proofs to the mainnet. This reduces congestion on the main chain, increasing throughput and reducing fees.
What makes Aptos different from other blockchains?
Aptos uses the Move programming language and a parallel execution engine called Block-STM. These innovations aim to improve transaction speed and reliability compared to earlier blockchains.
Are ZK-Rollups better than Optimistic Rollups?
ZK-Rollups offer better security and faster finality but are harder to implement due to EVM compatibility challenges. Optimistic Rollups are easier to deploy but require longer withdrawal periods.
Can Layer 2 solutions interoperate with each other?
Currently, interoperability between Layer 2 solutions is limited, leading to fragmented liquidity. However, ongoing research aims to improve cross-chain communication.
What is the future of new public chains like Aptos and Sui?
While these chains offer innovative technology, they face stiff competition from Ethereum’s established ecosystem and Layer 2 solutions. Their success will depend on ecosystem growth and adoption.
Conclusion
Layer 2 solutions currently lead in terms of adoption, ecosystem development, and TVL. Their integration with Ethereum’s robust network provides a significant advantage. However, new public chains like Aptos and Sui bring innovative architectures and strong backing from investors and development teams. While they may need time to mature, their unique features could eventually help them capture market share.
The competition between Layer 2 solutions and new public chains is far from over. Both approaches contribute to blockchain scalability and usability, and their coexistence may drive further innovation in the space.