Bull markets are a good time for major network launches, airdrops and exciting announcements.

After the world's shortest testnet, Kraken went live yesterday Mainnet launch of its L2 ink buildup - months ahead of schedule. Then, Sophon, which is a consumer-centric L2 validium in a layer that also makes available data available Fired Its main network.

But the announcement that got ETH bulls excited today? Banking giant Deutsche Bank plans to deploy L2 on ZKsync's Elastic Chain stack, Bloomberg I mentioned.

“Enterprises looking to build on-chain come to ZKsync to get the ability to build in Web3 without any compromises. ZKsync offers enterprises a customizable architecture to build custom solutions that enable privacy, scalability, and interoperability,” Alex Gluchowski, co-inventor of ZKsync, told Blockworks. Interoperability with other private and public blockchains.”

Code name Dama Project 2Deutsche Bank's initiative was first announced in early November as part of the Singapore central bank's initiative Project keeper. Project Guardian is a global consortium of 27 financial institutions and eight major groups of policymakers, focused on pushing financial institutions toward experimentation. Asset tokenization and Blockchain ledgers.

Deutsche's L2 is a development of TradFi, so all the trappings of TradFi L2 are expected.

This means that it is a permissioned L2 network and needs to prioritize regulatory compliance over the types of financial decadence prevalent elsewhere on public blockchains.

Regulators are increasingly close to recognizing the advantages of blockchain technology, but even the most forward-thinking policymakers are not giving up their power in a pinch.

Simply put, financial regulators are saying: Go ahead and innovate with blockchain technology, but not to the point where it undermines our political outcomes, please.

As AdrianoFeria.eth Put it down: “The only practical options for organizations that require strict oversight and interoperability are to either run private, permissioned layer-1 chains, or harness Ethereum’s L2 ecosystems.”

Therefore, Deutsche, like other central institutions that launched L2s, turned to the main destination for this customizable solution: Ethereum.

Ethereum's pivot from hashrate to a value pool-centric roadmap in 2020 was largely pitched as a technology bet. Horizontal scaling Instead of the vertical expansion path that Solana took. That is, the world state cannot be placed in one bloc, we need to divide it.

This modular freedom to launch the chain however you want is also what motivates many TradFi institutions to choose Ethereum.

This strategy, of course, is not exclusive to Ethereum. The Avalanche have also followed this up aggressively through it Subnet model.

However, Avalanche's appeal was subpar compared to the adoption of the Ethereum cluster, as it was one step behind Ethereum in technology.

“First, Ethereum clusters came out before Avalanche subnets. When subnets were ready, they had a much higher initial cost compared to launching an OP stack. All the while, clustering costs were trending downward with EIP-4844 and new data availability solutions.” Like CelestiaBlockworks Research Analyst Nikhil Chaturvedi explained.

But that also changes for the Avalanche.

Avalanches Etna This week's upgrade significantly reduces the costs of launching a subnet of Avalanche (now renamed Avalanche L1s). Previously, P-Chain validators had to stake 2000 AVAX, while today the costs would be 10 times lower.

“The costs have now been brought down to cheaper or comparable to the cost of the Celestia range,” Chaturvedi said.

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