Layer 2 protocols have performed a crucial function in scaling the Ethereum community. The blockchain’s co-founder Vitalik Buterin famous that Layer 2s in 2025 represents a big evolution from their experimental beginnings in 2019, having achieved sure decentralization milestones, secured billions of {dollars} in worth, and scaled Ethereum’s transaction capability by 17-fold, all whereas concurrently reducing charges.
Nevertheless, Buterin said that challenges stay, notably round scaling and heterogeneity.
Blob House and Interoperability Challenges
In his newest blog post, Buterin identified that Ethereum’s present blob area – a useful resource for storing and processing information on the blockchain – barely meets the calls for of at this time’s Layer 2s and their use instances. As such, this limitation might hinder the platform’s capacity to accommodate future development.
Moreover, the heterogeneity of Layer 2s creates challenges with regards to interoperability, composability, and consumer expertise.
Whereas Ethereum’s preliminary imaginative and prescient for scaling concerned a shard-based system of homogenous blockchains, Buterin famous that Layer 2s have as an alternative developed right into a fragmented ecosystem of chains created by totally different actors, every with totally different requirements and infrastructure necessities.
To deal with these challenges, the Ethereum co-founder outlined a number of key steps. On the Layer 1 facet, Ethereum should speed up scaling blobs and develop the Ethereum Digital Machine (EVM) and gasoline limits to deal with actions equivalent to proofs, large-scale DeFi, deposits, withdrawals, and mass exit eventualities.
On the Layer 2 entrance, he careworn the necessity for improved safety, making certain ensures equivalent to censorship resistance, mild shopper verifiability, and the absence of trusted events. Interoperability throughout Layer 2s and wallets should even be prioritized to allow simple interactions throughout chains via standardized addresses, message-passing protocols, bridges, and environment friendly cross-chain funds.
For customers, Ethereum ought to really feel like a unified ecosystem moderately than a group of disparate chains, Buterin added.
Strengthening ETH as a Triple-Level Asset
Buterin additionally said that Ethereum’s future as a powerful triple-point asset – functioning as a retailer of worth, medium of change, and unit of account – requires a “multi-pronged” technique to maximise the worth of ETH.
Step one is to cement ETH as the first asset throughout the mixed Layer 1 and Layer 2 Ethereum economic system. This consists of prioritizing ETH, the primary collateral for decentralized functions and monetary ecosystems.
Subsequent comes incentivizing Layer 2s to allocate a portion of their charges towards the broader Ethereum ecosystem, which might generate sustainable funding. This will likely contain burning a part of the charges, staking them, or channeling proceeds into public items for the Ethereum community.
Third, whereas rollups supply alternatives for Layer 1 to seize worth via MEV, it’s necessary to keep up flexibility, recognizing that not all rollups can undertake this mannequin resulting from totally different software necessities. Lastly, Ethereum might discover elevating the blob rely as a possible income stream.
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Layer 2 protocols have performed a crucial function in scaling the Ethereum community. The blockchain’s co-founder Vitalik Buterin famous that Layer 2s in 2025 represents a big evolution from their experimental beginnings in 2019, having achieved sure decentralization milestones, secured billions of {dollars} in worth, and scaled Ethereum’s transaction capability by 17-fold, all whereas concurrently reducing charges.
Nevertheless, Buterin said that challenges stay, notably round scaling and heterogeneity.
Blob House and Interoperability Challenges
In his newest blog post, Buterin identified that Ethereum’s present blob area – a useful resource for storing and processing information on the blockchain – barely meets the calls for of at this time’s Layer 2s and their use instances. As such, this limitation might hinder the platform’s capacity to accommodate future development.
Moreover, the heterogeneity of Layer 2s creates challenges with regards to interoperability, composability, and consumer expertise.
Whereas Ethereum’s preliminary imaginative and prescient for scaling concerned a shard-based system of homogenous blockchains, Buterin famous that Layer 2s have as an alternative developed right into a fragmented ecosystem of chains created by totally different actors, every with totally different requirements and infrastructure necessities.
To deal with these challenges, the Ethereum co-founder outlined a number of key steps. On the Layer 1 facet, Ethereum should speed up scaling blobs and develop the Ethereum Digital Machine (EVM) and gasoline limits to deal with actions equivalent to proofs, large-scale DeFi, deposits, withdrawals, and mass exit eventualities.
On the Layer 2 entrance, he careworn the necessity for improved safety, making certain ensures equivalent to censorship resistance, mild shopper verifiability, and the absence of trusted events. Interoperability throughout Layer 2s and wallets should even be prioritized to allow simple interactions throughout chains via standardized addresses, message-passing protocols, bridges, and environment friendly cross-chain funds.
For customers, Ethereum ought to really feel like a unified ecosystem moderately than a group of disparate chains, Buterin added.
Strengthening ETH as a Triple-Level Asset
Buterin additionally said that Ethereum’s future as a powerful triple-point asset – functioning as a retailer of worth, medium of change, and unit of account – requires a “multi-pronged” technique to maximise the worth of ETH.
Step one is to cement ETH as the first asset throughout the mixed Layer 1 and Layer 2 Ethereum economic system. This consists of prioritizing ETH, the primary collateral for decentralized functions and monetary ecosystems.
Subsequent comes incentivizing Layer 2s to allocate a portion of their charges towards the broader Ethereum ecosystem, which might generate sustainable funding. This will likely contain burning a part of the charges, staking them, or channeling proceeds into public items for the Ethereum community.
Third, whereas rollups supply alternatives for Layer 1 to seize worth via MEV, it’s necessary to keep up flexibility, recognizing that not all rollups can undertake this mannequin resulting from totally different software necessities. Lastly, Ethereum might discover elevating the blob rely as a possible income stream.
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LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE place on any coin!