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Crypto Daily 2025-03-19 09:41:02

Why L2s Continue to Struggle With Infrastructure, Proper Deployment, and Achieving True Scalability

Photo by James Sullivan on Unsplash For L2 chains, the struggle is real and rarely seems to get any easier. While launching an L2 should be easier than developing a Layer 1 from the ground up, it can seem like the two efforts are both massive and the L2 isn’t nearly as easy as it should be. The good news is that different platforms are starting to take notice of this and approach with various solutions designed to make the L2 launch experience (along with all the operations after that) much better. In general, these evolving tools and platforms tend to address three of the key limitations with L2 launches: Infrastructure limitations, proper deployment, and scalability. Let’s dive in and look at the details of each limitation, and what is being done to fix these for the many L2’s working to launch. As part of these fixes, we will look at the concept of a virtual chain such as Aurora , which might be able to solve all three limitations. Infrastructure Limitations For many L2s, a large reason to build on an underlying Layer 1 is to avoid having to develop the infrastructure yourself. After all, for most platforms the infrastructure is a necessary component of a good platform, but is not the value-added element that causes their clients to go with them over the competition. The issue is, however, that much infrastructure needed for this type of support differs greatly from L1 to L1. Further, a layer 2 doesn’t just need solid infrastructure when they launch, they need assurances that they will share the continuous updates and improvements to infrastructure as it is developed. Layer 2’s need to be on the lookout when selecting a layer 1, and ensure they know what they are getting. Basic contracts, security, and protocol elements might be part of the infrastructure included when launching an L2. However, there are key elements of infrastructure integration that can add up fast and should be included. A Layer 2 should also make sure to see what they can and can’t afford to set up on their own, and what might offer little or no extra value if they do it themselves, but is certainly necessary to get done right. For instance, being able to access the layer 1’s validators can be incredibly important, especially if it will take some ramping up before a layer 2 can obtain both the numbers and spread of validators necessary to secure the network. An oracle is another key infrastructure item that can be prohibitively expensive to develop from nothing into respectable results. These are absolutely critical for many of the tasks performed by a layer 2, but again, smaller layer 2’s will struggle greatly if they are forced to cultivate and properly build an oracle that works well for the clients of the ecosystem. These two components alone can cost massively both in terms of the development costs, and the time it takes to set them up correctly. Challenges in Proper Deployment Along the same path of infrastructure support are the challenges faced with a proper, successful deployment of a layer 2. After all, there are a number of minimum expectations for most layer 2’s to operator for their community, and few of these expectations are low cost or easy. However, layer 2’s face the double threat because if they do not offer these basic services, their support will sink. And if they create these services and any fail or create a security risk, the fallout could easily be fatal for the layer 2. Proper deployment of a layer 2 means a fully capable platform, complete with essential services. The validators and an oracle are key elements, as mentioned above. Other elements necessary for deployment are the abilities needed to properly on- and off-ramp funds for customers. An on/off ramp could easily cost the layer $50-100k, and any mistakes pose major security risks. Should the layer 2 want to host certain CEX elements, the setup of a CEX can easily exceed $1 million, and a security issue could easily clean out the funds of many investors and supporters. This too is a key element to many layer 2’s, must be done right, and is far too expensive for many platforms. Another key element of proper deployment is the ability to control gas fees for the community. This requires a control point for each customer and a way to determine who should pay for what aspects of gas fees. The most control a layer 2 can have is the ability to create gas abstraction completely, giving the layer 2 the ability to provide a very strong way for customers to smoothly integrate into Web3, and operate with a variety of business models. Some apps hosted on the layer 2 can easily pay gas fees. Other elements however would greatly appreciate gas fees that are either completely subsidized by the layer 2, or are at least reasonable given the norms of what gas fees should be expected. Either way, it’s about the flexibility and the ability to please the community. At this point it’s worth noting that all of the elements mentioned so far, both in terms of complexity, cost, and the “have to get it right” mindset, can be much cheaper and are able to deploy given the right virtual chain model. As mentioned above, Aurora’s services include all these elements as part of its production-ready virtual chain. For a business model like Aurora, or something similar, it’s not just about being able to avoid these massive costs or the time to develop them. Rather, it’s the ability to think very little about these elements because they can be quickly incorporated into the layer 2 immediately, with updates and improvements supplied as soon as they are ready. Barriers to Achieving True Scalability Discussing the infrastructure and key elements for deployment show that a layer 2 launching can have an incredibly different experience depending on what decisions they make when partnering with their layer 1. The final large challenge for these layer 2’s is the ability to scale up fast, comprehensively, and without running into limits. For this, the biggest element is the bridge. A layer 2 has to think big when first launching, and the ability to bridge to as many chains as possible can help gain exposure, communities, and connections. The term “omnichain” has been gaining popularity, and it certainly applies here. Layer 2’s need to be able to very quickly set up bridges to the other chains, giving them key access to entirely new ecosystems and serving those communities. Here too Aurora’s virtual chain performs very well, although other Layer 1’s have the ability to create intelligent bridges across the Web3 landscape. TL;DR of our Roadmap? We’ve got ya!:• Launch your blockchain in https://t.co/HlQkR0eslI pic.twitter.com/oYaymfOmMr — Aurora (@auroraisnear) February 27, 2025 Looking Ahead Infrastructure, deployment, and scalability are all critical components that help define a layer 2’s success and journey. These platforms need to look long and hard at their options before they invest millions into infrastructure and services that are not their key value propositions. Spending time on these elements when it isn’t what makes you special is a waste of time, money, and talent. Instead, layer 2’s must find the right partners that can balance out the cost, time, and the quality of what they need. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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