Deutsche Bank Plans L2 Deployment on ZKsync’s Elastic Chain
Bull markets are characterized by significant mainnet launches, airdrops, and announcements.
Mainnet Launches
Kraken advanced its Ink L2 rollup mainnet launch ahead of schedule. Additionally, Sophon launched its consumer-focused validium L2 on the Avail data availability layer.
Institutional Interest in ZKsync
Deutsche Bank plans to deploy an L2 on ZKsync’s Elastic Chain stack, as reported by Bloomberg. This move signals growing institutional interest in Web3 technologies.
According to Alex Gluchowski, co-inventor of ZKsync, institutions choose ZKsync for customizable architecture that supports privacy, scalability, and interoperability with public and private blockchains.
Project DAMA 2
Codenamed Project DAMA 2, Deutsche Bank’s initiative was announced as part of Singapore's Project Guardian, which includes 27 financial institutions and eight policymaker groups focused on asset tokenization and blockchain ledgers.
Regulatory Compliance
Deutsche Bank's L2 network will be permissioned, emphasizing regulatory compliance over other public blockchain activities. Regulators acknowledge blockchain's potential but maintain oversight to protect political interests.
As noted by AdrianoFeria.eth, institutions needing stringent oversight must either operate private chains or utilize Ethereum’s L2 ecosystems.
Ethereum's Role
Deutsche Bank, like other centralized institutions, has chosen Ethereum for its customizable solutions. Ethereum's shift to a rollup-centric roadmap in 2020 promotes horizontal scaling, allowing for distribution across multiple blockchains.
This modular approach is also pursued by Avalanche through its subnet model. However, Avalanche's adoption has lagged due to technological delays compared to Ethereum.
Avalanche's Recent Developments
Avalanche's recent Etna upgrade significantly reduces costs associated with launching subnets, now termed Avalanche L1s. The cost to stake has decreased from 2000 AVAX to more than ten times smaller, making it competitive with rollups on Celestia.