Martin Koppelmann

On the same chain, you would not expect that because there can immediately be arbitrage.

And basically then on the same chain, you only should have one price for one token.

And in the EEZ, you will also have only one, let's say, for example, one price per token.

I would give one simple answer is to say Layer 2 right now, they process transactions and kind of once in a while, maybe every 10 minutes, they commit to Ethereum or settle on Ethereum.

And then kind of to finalize that it often takes even longer than up to a week with a dispute period.

Chains that are part of the EEZ settle essentially every block, so every 12 seconds.

So every 12 seconds, they make, I mean, they can make smaller blocks, they can be faster in between, but every 12 seconds they synchronize or settle with Ethereum.

And so with every Ethereum block, they settle with Ethereum and those settlements allow for transactions between Ethereum and those chains.

Yeah, but the good thing is also

It's enough if one chain starts.

So, or at least for that chain, it already gives significant benefit and that is accessing Ethereum's liquidity.

So even if you had the first chain and the only chain, but you are part of this, or I mean, you have this, yeah.

or every block settlement with Ethereum, it allows you or your users of the chain already to interact natively with Ethereum.

So practical example, we place an order on, let's say, Cowswap on such a chain, then the solvers or the router would dynamically decide

Is it worse or should I settle this locally or with the liquidity on my chain, which would potentially mean even less gas costs because you don't need to touch Ethereum state?

But if it's worth it, the extra gas costs of Ethereum, let's say gas cost on Ethereum might cost 20 cents or something like that.

So if those 20 cents are worth it to kind of the price improvement is big enough, then such a chain would decide to create a transaction that both uses L1 and L2 state.

Yeah, and that means even a single chain benefits, in my view, significantly from joining EEZ.

Then, of course, it can go beyond.

As soon as you have one chain joining, then, in a way, the aggregate liquidity is now Ethereum plus that chain, and the next chain joining would join both, kind of, in a way, because they already are as a shared chain, shared zone.