Web3 Expansion: L2 Solutions Drive Multi-Decade Blockchain Growth

Igor Mandrigin, co-founder and Chief Technology Product Officer of Gateway.fm, argues that the proliferation of layer 2 (L2) solutions in the Web3 space is not a sign of fragmentation but rather an indication of the early stages of a multi-decade expansion in specialized, modular blockchain infrastructure.

Mandrigin contends that the idea of slowing down the creation of new L2s is akin to arguing that there were too many websites in 1998. He believes that the current number of chains is insufficient and that the rise of L2s is not a temporary trend but an enterprise-grade infrastructure expansion. This expansion is driven by industries such as banking, gaming, logistics, and manufacturing, which are increasingly adopting public blockchains due to their inability to meet specific needs.

These industries, known for their risk-averse nature, are turning to proprietary networks that offer custom performance, predictable costs, jurisdictional compliance, and granular-level privacy. Mandrigin compares this to how major corporations like Facebook, Netflix, and JPMorgan did not co-host on shared platforms like GeoCities. He argues that shared L1s and monolithic architectures, while suitable for early token experiments and composable DeFi primitives, cannot support the complexity, regulatory burden, or contractual requirements of real-world businesses.

The growing viability of L2s is attributed to modular stacks, rollup-as-a-service platforms, and breakthrough zero-knowledge proof technology. These advancements make it increasingly feasible and accessible for enterprises to launch and maintain specialized chains. As infrastructure improves, the cost of launching and maintaining these chains will decrease, leading to a substantial rise in the number of L2s.

Mandrigin addresses concerns about user experience and liquidity fragmentation, arguing that these are short-sighted. He envisions a future where seamless interoperability is achieved through shared settlement layers, trust-minimized bridges, and unified account abstraction. Users will not be concerned about the specific chain they are on but will appreciate the ease of transactions.

Mandrigin compares this to how cloud computing unlocked hyper scale by abstracting the hardware layer. Modular blockchains are unlocking hyperscale for value transfer, asset issuance, and programmable trust. He believes that specialized L2s will serve different verticals, jurisdictions, and use cases, coexisting without cannibalizing each other. For example, an L2 for high-frequency trading can easily coexist with an L2 for national land registries.

Mandrigin concludes that the current state of chains is merely the beginning, and those betting on consolidation or a "winner-take-all" chain are betting against scale and sovereignty. The real bet, he argues, is on hundreds of L2s and thousands of use cases as part of one modular, scalable future.