Protocol Interview: Layer N

JSev
3 min readMay 1, 2024

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Intro: I reached out to the Layer-N team on discord and was able to get some answers about the protocol. I was curious since they seemed to be doing something different in the rollup space. These are their answers — feel free to join their discord, they seem open to interaction and have a good community.

  1. What are the unique features of Layer N?

Layer Ns unique features come with the ability to create custom VMs that are dedicated to the application you are building. For example, NordVM, the first custom VM built by Layer N for exchanges has launched on Testnet. Sushi Swap is currently building their own DEX using NordVM called SUSA. Having your own dedicated VM for your specific dApp allows for high performance and these exchanges built on NordVM will compete with the capabilities of centralized exchanges.

2. How does Layer N address scalability and throughput challenges?

The vision of Layer N is eventually 1,000 rollups all connected and communicating with each other. When each application has it’s own rollup, you don’t need to worry about gas fees spiking due to other applications on a shared chain. The environment is completely yours. This means you can have fast and low cost transactions without any restrictions.

3. What security measures does Layer N implement and how do they compare to other solutions?

Layer N uses a ZK based Fraud Proof system. Traditional optimistic rollups rely on interactive fraud proofs, which directly simulate state transitions on-chain, leading to inefficiencies and safety concerns. These also cause long withdrawal periods back to Ethereum. The fraud proof system that Layer N is using, ensures higher security without withdrawal delays.

4. Can you explain how you view rollup interoperability within the Ethereum ecosystem?

Interoperability is one of the keys that will make Layer N successful. The Layer 2 ecosystem today has become very fragmented and to use each chain, you need to bridge. Layer N is building what is called StateNet. Statenet is a network of XVMs that share a communication and liquidity layer. The StateNet is a form of layer 2 design that enables many types of VMs to seamlessly integrate and share liquidity between each other.

5. What are the key advantages of Layer N over other similar projects?

XVMs allow builders to create the best applications possible without worrying about constraints, and the Statenet allows all L2s built on Layer N to be connected. This gives even the newest applications access to a large pool of liquidity. Giving builders the perfect environment and tools to build their app is a big advantage.

6. How do you plan to ensure a seamless user experience for interacting with decentralized applications on Layer N?

The StateNet will have many VMs that share a common communication protocol. The StateNet also leverages off-chain Data Availability (EigenDA) solutions to maximize performance, all while settling state and running proofs on Ethereum. Efficiency and smooth UX is a top priority for Layer N.

7. How does Layer N contribute to the overall decentralization and security of the Ethereum network?

Layer N is an execution Layer for Ethereum and also posts data to an altDA layer. That said, all transactions executed on the Layer N Layer 2 network are settled to Ethereum. This way, Layer N is leveraged the security and decentralization of Ethereum

8. How do you feel about the current state of cryptocurrency solutions, and are they fulfilling their original promises of decentralized and open finance?

I think we have made a ton of progress, but we still have a long ways to go. In terms of scalability, I think we are reaching the point where we have plenty of fast and cheap blockchains, but they need to be customized for specific apps, and also interconnected. This is why I am so excited for what we are building at Layer N.

9. What motivates you to work on Ethereum every day?

I feel as if Ethereum is financial freedom for all. Meaning you have the ability to take control over your own finances without 3rd parties having any say. Ethereum is giving the world a chance to be their own bank, and control their money without trusting banks.

10. Do you have any advice for young builders in the defi space?

Consume knowledge and meet friends. Opportunities will arise.

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JSev

Product Manager. writer (defi + NFTs). Artist. Poetry collection ‘Poemas’ now available for purchase on amazon. site: nftmatrix.cent.co