Degen Chain Soars but Invites Controversy in the Crypto Community

By: Eliza Bennet

Polygon's CEO Marc Boiron has spoken out about the potential risks of layer-3 protocols, such as the newly successful Degen Chain. His concern centers on the possibility of layer-3 protocols posing a threat to Ethereum's security and hinder its scalability solutions. Meanwhile, Degen Chain, a layer-3 network built using Arbitrum Orbit for the DEGEN token, continues to gain popularity among Farcaster users, a rapidly growing web3 social media platform.

Despite only launching on March 28, Degen Chain has already facilitated the bridging of more than $30 million and powered over 3.5 million transactions. Yet its success continues to divide opinions across the crypto community. Boiron’s concern is that layer-3 networks divert value away from Ethereum to layer-2 platforms, threatening Ethereum's security in the process.

Adding to the debate, a blockchain expert, Cygaar, explained that layer-2 networks have yet to reach the same level of security as Ethereum due to existing challenges such as network centralization, upgradeable bridge contracts, and developing proving systems. He suggested that integrating layer-3 networks on top of these layer-2s could exacerbate these risks and compromise the security of the blockchain networks

As the crypto world continues to evolve, it's clear that the debate about the benefit and disadvantages of layer 3 solutions like Degen Chain will persist.