Blockchains are databases software builders use to construct novel user experiences. Simply as lots of of various databases exist in web2, completely different blockchains have developed in web3.
In September, I revealed the State of Web3 in Data. I’ve been watching a type of charts very intently : slide 25 which tracked L2s & L1s.
Layer 2s (or L2s) like Arbitrum & Optimism, sit atop Ethereum (an L1). They supply quicker & cheaper transactions for software builders.
The common Ethereum transaction prices about $2.60 as of this writing, whereas on Arbitrum it costs $0.07, a 97% financial savings.
For a person transaction, the distinction might not matter, however for software builders & frequent merchants, these {dollars} accumulate over time. Within the long-term, decrease costs will drive extra exercise, important for broader adoption of web3 applied sciences.
In September, L2s processed about 30% of Ethereum transactions. Six months later, that determine is 67% in keeping with Dune. Inside the Ethereum ecosystem, this quantity ought to asymptote to 90-95%.
Economics works – even within the generally unusual world of web3.
As web3 evolves, we’ll see extra cases of economics driving conduct :
