Dima Romanov Discusses the Future of Layer 2 Blockchains on Public Key Podcast

In a recent episode of the Public Key podcast, Dima Romanov, Co-founder and CEO of Layer N, shared his insights on the evolution of performance and scalability in Layer 2 blockchains. The discussion, hosted by Ian Andrews, CMO of Chainalysis, delved into the challenges and innovations surrounding Ethereum's StateNet and the broader blockchain ecosystem, according to Chainalysis.

Performance and Scalability in Blockchain

Romanov highlighted the persistent scalability issues plaguing Ethereum (ETH) and other blockchains, emphasizing the need for lower transaction fees and better user experience. He argued that the blockchain space's leading player would be the one providing the best experience for both developers and users.

Layer N, described as “an Ethereum StateNet,” aims to tackle these issues by empowering lower transaction fees and leveraging a spectrum of custom Virtual Machines (VMs) for diverse applications. Romanov explained that thinking more like a web2 company has attracted investors and given Layer N a competitive edge in the DeFi space.

Key Insights and Innovations

During the podcast, Romanov shared several key insights:

• Solana and Ethereum Challenges: Romanov discussed the existing challenges with Solana and Ethereum blockchains, including high transaction fees and limited throughput.
• Investment from Founders Fund: Layer N secured investment from Peter Thiel’s Founders Fund, highlighting the firm's unique approach to blockchain scalability and performance.
• Innovative Scaling Solutions: Layer N’s innovative blockchain scaling solutions for enhanced performance and usability were detailed, including the use of custom VMs.
• Ethereum Roadmap Impact: The current state of the Ethereum multi-stage roadmap and its impact on Layer N was explored, with Romanov expressing confidence in Layer N's future despite Ethereum's ongoing developments.

Quote of the Episode

Romanov emphasized the unsustainable nature of high transaction fees, stating, “People cannot sustainably pay $50 per transaction. People cannot use network because it’s 15 [Transactions Per Second] TPS.”

Minute-by-Minute Breakdown

The podcast provided a detailed minute-by-minute breakdown, covering topics such as:

• The existing challenges with Solana and Ethereum blockchains
• How the Layer N team secured investment from Founders Fund
• Layer N’s innovative blockchain scaling solutions
• The current state of the Ethereum roadmap
• The concept of Layer N as “An Ethereum StateNet”
• The differences between XVMs, GVMs, and traditional EVMs
• Migrating smart contracts from Ethereum EVMs to Layer N’s XVMs
• The process of developers building on Layer N in Beta
• Strategies for attracting developers and building a web3 community

Related Topics

Romanov also touched on related topics, including the importance of horizontal scaling, the need for low transaction costs, and the role of custom infrastructure in blockchain development. He mentioned that successful blockchain applications often require custom stacks to provide the best user experience.

Looking ahead, Romanov expressed optimism about Layer N’s potential to revolutionize the blockchain space by offering a network of roll-ups with seamless inter-VM communication. This approach aims to create a robust ecosystem where applications can scale horizontally while maintaining high performance and user-friendly experiences.

For more details on this insightful discussion, visit the official Chainalysis blog.