Challenges Faced By Developers Using L2 as Application Chains

Challenges Developers Face When Using Layer 2 (L2) as Application Chains

In the rapidly evolving landscape of blockchain technology, developers are continually exploring new horizons to create more efficient and user-friendly applications. However, Sonic Labs Chief Technology Officer Andre Cronje has brought to light several significant challenges faced by developers when utilizing Layer 2 (L2) solutions as application chains.

1. Lack of Essential Infrastructure Support

One of the primary concerns highlighted by Cronje is the absence of crucial infrastructure components essential for successful deployment on L2. This includes the lack of stablecoins, oracles, and institutional custody solutions, which are vital for establishing a stable and secure foundation for applications.

2. Vulnerabilities in Centralized Architecture

Cronje pointed out that the centralized architecture often associated with L2 solutions poses a risk, making them susceptible to potential attacks. This vulnerability can deter developers from fully embracing L2 solutions, as the security of their applications could be compromised.

3. Liquidity Dispersal and Cross-Chain Bridges

Deploying an application on L2 leads to the dispersion of liquidity and necessitates the use of cross-chain bridges. This added complexity complicates the development process as it requires developers to navigate various networks and protocols.

4. Limited User and Developer Community

The limited presence of a robust user and developer community on L2 platforms means that developers often spend a significant amount of their time addressing infrastructure issues rather than focusing on enhancing user experience or application performance. This situation results in diminished network effects, making it challenging for applications to gain traction.

5. Lengthy Transaction Confirmation Times

Several vendors have expressed hesitation in collaborating with L2 solutions due to the still lengthy transaction confirmation times. This delay can hinder the overall user experience and adoption of applications built on L2.

6. Working in Isolation

Developers working on L2 applications frequently find themselves isolated, lacking collaborative support from a thriving community. This isolation reduces opportunities for learning, sharing best practices, and enhancing the development process.

7. Underestimated Costs of Infrastructure and Compliance

Another significant challenge is the tendency of application chains to undervalue the costs associated with infrastructure and compliance. Essential elements, such as browsers, custody solutions, exchanges, oracles, bridges, toolkits, Integrated Development Environments (IDEs), on/off ramps, native issuance, and regulatory compliance, all contribute to the total cost of development.

8. Rising Costs in 2024

As of 2024, Cronje reported that the costs associated with these infrastructure and compliance elements have reached an alarming total of $14 million, much of which consists of recurring expenses. This financial burden can be a significant hurdle for developers seeking to innovate and create on L2.

Conclusion

In summary, while Layer 2 solutions present exciting opportunities for blockchain development, they are not without their challenges. Developers must navigate a landscape fraught with infrastructure gaps, security vulnerabilities, and cost considerations. Understanding these challenges is essential for developers and stakeholders alike as they seek to harness the full potential of L2 technologies.