Layer N Launches Testnet, Aims To Host Unified Ecosystem Of Appchains

Layer N, a forthcoming execution environment for Layer 2 networks, has launched the first phase of its testnet deployment.

Announced on April 10, Layer N’s first testnet phase allows developers and users to experiment with NordVM, an application-specific rollup optimized for asset exchanges.

The project claims that NordVM can settle “tens of thousands of orders per second” via a scalable orderbook, and can support cross-margin and cross-collateral accounts across “thousands” of markets and assets to rival the user experience of centralized exchanges.

“Today marks a pivotal moment in the evolution of Layer N as we unveil our much-anticipated testnet Phase 1,” said Dima Romanov, Layer N’s co-founder and CEO. “This milestone brings us one step closer to realizing our vision of on-chain infrastructure that can rival traditional web2 networks. With the testnet, we invite our community and partners to join us in shaping the next generation of crypto applications on Layer N.”

The project estimates that NordVM offers performance gains that are orders of magnitude over existing decentralized exchange implementations. All trades executed via NordVM’s orderbook are settled on-chain.

Layer N was first announced in September 2023 after closing a $5 million funding round led by Founder’s Fund, the venture capital firm co-founded by former PayPal CEO, Peter Thiel.

The project bills itself as an execution layer that can host a network of rollups boasting shared liquidity and communication across chains. Users interact with the chains through a single unified interface, simplifying the user experience (UX).

“Layer N aims to become the execution layer for thousands of hyper-optimized rollups while maintaining a monolithic like UX for end-users,” the project said. “By designing the network for high throughput, low latency, and high composability/capital efficiency, Layer N aims to rival existing centralized networks.”

Layer N also supports full composability and liquidity sharing with third-party Layer 2 rollups, including Ethereum Virtual Machine (EVM) networks through its upcoming N-EVM implementation.

Challenging centralized exchanges

Layer N leverages EigenLayer’s EigenDA for data availability, allowing it to support significant transaction throughput.

The project completed closed testnet trials during January, with NordVM achieving a sustained throughput of 20,000 transactions per second (TPS) and a peak of 120,018 TPS.

“Nord[VM] was designed specifically to close the current gap between decentralized trading venues and centralized ones,” Layer N said.

“Imagine if centralized exchanges we are all familiar with could allow developers to build applications directly on top of them,” Romanov added. “That’s what we are enabling.”