Head of Avalanche DeFi: What is the role of L1 in the L2 era?

C chain is the liquidity center of Avalanche. As the subnet grows, all native assets on the C chain, exchange integrations, etc. will be leveraged through Avalanche Warp Messaging.

Interviewee: Luigi D'Onorio DeMeo, Head of Avalanche DeFi/DevRel

Written by: Ignas, DeFi Researcher

Compilation: Deep Tide TechFlow

Crypto researcher Ignas interviewed Luigi D'Onorio DeMeo, Head of DeFi/DevRel at Avalanche, to share his perspective on what the role of L1s is in the age of L2s, and we explore Avalanche's eventual vision.

Here's his take:

These two solutions promise to scale Ethereum through fast transactions and lower fees, which was the original purpose of L1. So, what is the function of Shanzhai L1 now?

**Will they disappear, evolve, or continue to provide unique functionality? **

Luigi disagrees that Ethereum has won the L1 "war". He warned that if all activity were concentrated on ethereum, there would be centralization risks. He wants multiple L1s to provide choice, more fault tolerance, and introduce competition/innovation at the L1 level.

Interestingly, this is the exact opposite of what Sanket, Polygon's head of growth, shared with me in our AMA - he believes that Ethereum has won the L1 war.

Why does Avalanche have three chains + subnets? Luigi explained:

• The C chain is compatible with EVM and is suitable for smart contracts with fast finality;

• The P chain is the place of verification;

• The X chain is a UTXO-based chain for fund transactions.

The vision of the Avalanche subnet is: "Subnets enable anyone to build their own blockchain. They can be customized with validator-level permissions, different virtual machines, etc. Many projects will want their own chains, such as TSM , Dexalot, DYDX, etc.”

Why build on subnet instead of L2 or L3:

L3 and L2 lack composability, and subnets, there's no reason you can't deploy an L2 as a subnet, have validators run the orderer, and use Avalanche Warp Messaging to communicate with other subnets.

The future of the Avalanche C-chain: "The C-chain is the liquidity center of Avalanche. As the subnet grows, all native assets, exchange integrations, etc. on the C-chain will be utilized through Avalanche Warp Messaging."

“As the subnet grows, the C-chain will thrive.”

Luigi introduced AvaCloud from Ava Labs: "AvaCloud facilitates no-code Web3 blockchain deployment, making it faster, cheaper, and less risky to market. We are constantly pursuing a world where deploying application chains is as simple as possible."

About the Avalanche blockchain ecosystem: "The value proposition of the Avalanche C-chain is different from other systems. The main network is a 'special subnet'. The C-chain allows smart contract deployment and has fast finality."

Luigi spoke about the ultimate goal of Avalanche: “Our goal is to provide an infrastructure that allows anyone to seamlessly build their own blockchain. We have corporate and institutional clients from SK Planet, TSM, Bowlero, Gunzilla, and many others. subnet."