Layer 2 Solutions: Why Most Companies Should Skip Custom L2 Development

As the blockchain industry matures, companies are increasingly exploring Layer 2 (L2) solutions to enhance their operational efficiency. However, according to recent insights from Coindesk, developing a custom L2 solution might not be the optimal path for most enterprises.

Understanding the L2 Development Dilemma

Paul Brody, EY’s Global Blockchain Leader, has identified specific criteria for companies considering custom L2 development. As reported by Coindesk, only organizations meeting two crucial conditions should pursue this path:

• Ability to aggregate significant transaction volume
• Serving customers who cannot directly connect to Ethereum

The Cost-Benefit Analysis of Custom L2 Solutions

Developing a proprietary L2 solution involves substantial investments in:

• Technical infrastructure
• Development expertise
• Ongoing maintenance
• Security measures

According to blockchain experts at Coindesk, these costs often outweigh the benefits for most organizations.

Alternative Approaches to L2 Integration

Instead of custom development, companies can consider:

• Adopting existing L2 solutions (see our comparison guide)
• Partnering with established L2 providers
• Utilizing hybrid solutions (learn more)

Making the Right Decision for Your Business

Before investing in custom L2 development, <a href="https://www.coindesk.com/opinion/2025/09/09/yo%0A%0A%0A%0Aur-company-probably-doesn-t-need-its-own-l2″>experts recommend evaluating:

• Current transaction volumes
• Customer technical capabilities
• Available resources
• Long-term scalability needs

Summary

While custom L2 solutions offer potential benefits, most companies will find greater value in leveraging existing solutions. As highlighted by Coindesk’s analysis, focusing on core business objectives while utilizing established L2 infrastructure often proves more beneficial.

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[KEY_TAKEAWAYS_START] Most companies don’t require a custom L2 solution for their blockchain operations Custom L2 development is only beneficial for companies with high transaction volumes and specific customer limitations Existing L2 solutions often provide better value and lower risk compared to custom development Companies should carefully evaluate their resources and needs before investing in L2 technology [KEY_TAKEAWAYS_END]

[FAQ_START] [FAQ_ITEM]Q: What are the main criteria for needing a custom L2 solution?[FAQ_ANSWER]According to EY’s blockchain leader, companies need significant transaction volume and customers who cannot directly connect to Ethereum to justify custom L2 development.[/FAQ_ITEM] [FAQ_ITEM]Q: What are the alternatives to building a custom L2?[FAQ_ANSWER]Alternatives include adopting existing L2 solutions, partnering with established L2 providers, or implementing hybrid solutions that leverage current infrastructure.[/FAQ_ITEM] [FAQ_ITEM]Q: How should companies evaluate their need for L2 solutions?[FAQ_ANSWER]Companies should assess their transaction volumes, customer technical capabilities, available resources, and long-term scalability needs before deciding on L2 implementation.[/FAQ_ITEM] [FAQ_END]

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