Recently, Tiger Research published an in-depth research report on the cross-chain bridge Orbiter Finance, listing its extremely high market share data in the mainstream layer2 asset cross-chain, and mentioned that Orbiter is making a strategic transformation from cross-chain bridge to Vizing layer2 chain. The question is, since the "business model" of cross-chain bridge is not bad, why is it so ambitious to engage in layer2 chain? Let me try to interpret it:
1) Since Ethereum established the rollup-centric layer 2 expansion strategy, the "cross-chain bridge" has become a top priority as a key component service connecting various layer 2 message communications and asset exchanges.
However, since the original cross-chain path defined by Ethereum is basically L2-->L1-->L2, and there is a 7-day challenge period window for OP-Rollup, if layer2 chain A wants to transfer an asset to layer2 chain B, in addition to the two larger cross-chain gas fees between the mainnet and layer2, there is also a longer time cost of locking up funds.
As a result, most cross-chain asset transactions between layer 2 must rely on centralized CEX withdrawal solutions or on-chain third-party cross-chain bridge protocols such as Orbiter, Hop Protocol, and Wormhole.
This is why the report states that Orbiter Finance is the key to maintaining its leading position in this round of layer2 expansion. According to data disclosed, its market share is approximately 40%, and it has a unique Maker mechanism, which almost monopolizes 70% of the profits in the cross-chain bridge market. These data can indirectly confirm Orbiter's success in the cross-chain bridge track.
2) However, after the Cancun upgrade, the layer2 market was once a flourishing situation. The two major camps, mainly OP-Rollup and ZK-Rollup, continued to expand vertically and continuously promoted their own technology stacks and ecosystems. For example, OP Stack developed dozens of new layer2s including Base as part of its Superchain grand strategy.
However, both OP Stack and ZK Stack are focusing on developing their own closed ecosystems. Although their wings are gradually growing stronger, they are increasingly showing a trend of development like warlords fighting for power, which leads to further dispersion of layer2 liquidity and the continued fragmentation of user experience.
In this case, @VitalikButerin has repeatedly called for layer2 to improve interoperability and launched the Helios light client to accelerate the de-trust and interoperability between layer2. In addition, many chain abstraction and ZK technology service providers including @ParticleNtwrk and @ProjectZKM have also helped the Ethereum layer2 ecosystem to unify liquidity through the intervention of third-party interoperable layers.
This means that the Endgame of Ethereum's layer 2 ecosystem will definitely build a consistent interoperable layer. In other words, if cross-chain bridges such as Orbiter are satisfied with the current "business model", they may eventually face the risk of being eliminated by the market.
3) Therefore, it is not difficult to understand why Orbiter has changed from passive to active and launched the Vizing layer2 expansion solution to enable secure and low-cost seamless asset interaction between layer2 multi-chains.
As mentioned above, other layer2 chains all adopt the strategy of separatism, but Vizing may only have the strategy of "uniting with allies". To this end, the Vizing chain has three core features:
1. Vizing Account Abstraction (VAA): Allows users to manage multiple Layer 2 networks with a single account, greatly simplifying the user experience, similar to the account unified abstraction service provided by the chain abstraction service;
2. Vizing Environment Layer (VEL): Provides developers with a unified cross-chain development environment, lowers the threshold for ecological construction, and is equivalent to a unified cross-chain communication standard. First unify the standard, then promote ecological development;
3. Cross-chain information communication between Rollups: Reduce dependence on Ethereum L1, adapt to different layer2 Rollup chains, use unified and standardized interfaces to communicate with them, and then provide conditions for efficient and decentralized inter-layer2 asset communication;
above.
In general, under the premise that layer2 will inevitably move towards cross-chain interoperability, Orbiter chose to actively "revolutionize" itself and promote a more ambitious and imaginative layer2 interoperable shared layer strategy.
Moreover, with the finalization of subsequent roadmaps such as the ZK-SNARKs of the Ethereum ecosystem, including the expected Beam Chain network upgrade plan, etc., all point to a unified layer2 interoperable ecosystem. Before that, whoever can truly contribute value to the interoperability of the layer2 Omini full chain will directly affect its subsequent ecological niche in the Ethereum ecosystem.
