This article compares the Ethereum Layer 2 solution (Arbitrum, Optimism, zkSync , Base ) and how they uniquely scale the Ethereum network.

Estimated reading time 8 minutes...

Leading Layer 2 Solutions

Players like Arbitrum ,  Optimism , zkSync and Base are leading the collection-centric environment. Leading summaries, sorted by total volume locked, are shown below:

Leading rollups by total value are locked. Source: L2Beat

Base: The Chain Reaching Billions of Users

Launched on August 9, 2023 , Base is the newest optimistic group to join the party.  Coinbase launched Base as the next step towards increasing economic freedom worldwide by providing users with an easy way to participate in the on-chain economy.

Base will be integrated with Coinbase Wallet  (and other Ethereum wallets) and the Coinbase app in jurisdictions where the regulatory environment allows, aiming to make web3 available to more people  . More importantly, Coinbase's 110 million verified users can benefit from an easy way to join the Ethereum blockchain, an unprecedented number in the on-chain world.

To use an analogy, you can think of the Ethereum network as the US Postal Service , or the primary government mail courier in a country. It is reliable, secure and available to everyone, but due to its wide reach and demand, it frequently faces congestion, delays and relatively high costs.

Second Tier 2 to Join Super Chain

Base is joining Optimism Superchain , and Coinbase 's resources and human capital are joining OP Labs to contribute to the mission of Optimism Collective . This mutually beneficial relationship helps Coinbase by providing Base with a robust, interoperable, scalable architecture. It also helps Optimist by adding value to the Superchain, accelerating the path to decentralization, and accruing funding revenue. As Coinbase states:

“We will provide a percentage of the fees earned through transactions to the Optimist Collective to become part of the Superchain, thereby contributing to funding the essential public goods infrastructure of both the Superchain and the broader crypto economy.”

Base Could Become the Main Chain of Real-World Tokenized Assets

Base occupies a unique position in the layer 2 environment and can be the main platform for the distribution of real-world blockchain assets. Every Coinbase user has gone through KYC/AML checks to transact on Coinbase ; This means its 110 million verified users can experience less hassle trading assets such as securities that require KYC/AML checks.

Does BASE have Tokens?

Coinbase has frequently announcedlikely never be a Base-native token. Beware of scams trying to impersonate Base!

Base Official Twitter Account. 

ZkSync Era Era

ZkSync Era (also known as Era or zkSync) is the first publicly available EVM compatible zk aggregation ( zkEVM ), released on March 24, 2023 .  Many people, including Vitalik Buterin , have called zkEVMs the holy grail of scaling. because among all Ethereum scaling solutions, zkEVMs are the only ones that offer high scalability, EVM compatibility, and trustlessness.

Currently, zkSync Era ranks 3rd in Tier 2 in terms of total volume locked and ranks first in transaction activity. 

Although metrics may be inflated in anticipation of the token airdrop, it is the clear leader of all zk rollups and has the most advanced technology.

When Will zkSync Token Be Released?

A zkSync token is coming - it's even mentioned as given in the documentation.  However, there is no set date and the team has vaguely stated that the token will be released " when the time is right

." Decentralizing collection is the primary goal for which the token will be required. But the network is still in its early stages, and the team believes that upgradability and control over sequencers will benefit all users in case a bug or attack occurs and rapid action is required.

The next step in centralization  will be the transition to a community-elected security council model, and at this stage a token will start to make more sense. Until then, beware of zkSync impersonators and scammers!

Comparison of Layer 2 Solutions

Competition in the Layer 2 ecosystem is fierce. The design space for rollups is wide, and each solution works tirelessly on what they believe is the best approach to scaling Ethereum .

The choice between Optimist Rollups and Zero Knowledge rollups is the key differentiator that impacts performance. To know which rollup can win, it's worth understanding some techniques.

Current Phase of Leaderboards

In addition to the design choices that affect performance when evaluating aggregations, it is also critical to look at the stage of development of that aggregation as it can impact the security of the chain.

Today , Arbitrum is the most advanced roundup with the features necessary to perform "stage 1" rounds , a terminology popularized by Vitalik Buterin to describe training wheel stages  . ZkSync is a "stage 0" aggregation with some missing features that increase the risks.  L2beat  does a great job showing the stages of picking training wheels and the risks involved.

Stage of leading roundups. Source: L2Beat

Regarding Optimist and Base, it is very important to know that fraud proofs are currently in development as this carries significant risks that are not fully understood.

Who Will Win the Layer 2 Race?

When we look at the current landscape, it seems that Arbitrum is ahead  in the 2nd layer race . Offchain labs delivered the technology quickly, allowing Arbitrum to become a leader in DeFi and mass security features. With proto-danksharding reducing optimistic aggregation transaction costs by 5-10x , Arbitrum is poised to remain at the top of the tier 2 race in the short term.

Arbitrum's closest competitors are the other two optimist compilations covered: Optimist and Base . Innovative retroactive product financing and grant systems could energize the superchain's flywheel, and the popularity of both chains could eventually explode. 

I have my eyes on Coinbase for how they might integrate Base into their product , as this could be incorporated into a lot of things on-chain.

Finally , zkSync is a significant long-term threat  as zk rollups have the highest potential for Ethereum scaling efficiency . Although they will remain more expensive than optimistic pickups in the short term, zk technology is still in its infancy. We can expect game-changing technological advances to make zk rollups the go-to way to scale Ethereum

 for nearly all applications . In the future, we can foresee zk collections that are not EVM compatible but have a special environment to increase efficiency. Starkware , a leader in this field  , is working on significant improvements to their technology stack  .