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Ethereum co-founder Vitalik Buterin shared plans to scale Ethereum’s Layer-1 (L1) and Layer-2 (L2) protocols. Buterin highlighted the need for continued innovation in L2 solutions, with the plans coming amid frothing criticism of Ethereum ecosystem leadership. Buterin’s Plans for L1s and L2s in 2025 In a recent blog post, Buterin reinforced his stance that L2 protocols are the future of Ethereum scalability. He dismissed the idea of scaling solely through L1 as impractical and contrary to Ethereum’s core ethos. “We need to continue building up the technical and social properties, and the utility, of Ethereum,” Buterin wrote. According to Buterin, Ethereum risks losing its mission of being a decentralized and socially impactful alternative if it lacks these elements. Reflecting on the evolution of L2 solutions, Buterin remarked on the vast progress made since the early experimental phase of 2019. However, he identified two primary challenges for Ethereum’s scaling efforts: Current L2 solutions are constrained by insufficient blob space, limiting their ability to handle the ecosystem’s growing needs. Buterin proposed increasing the number of blobs on L1 to enable moderate short-term scaling. At the same time, he calls for a focus on improving Ethereum’s proof-of-stake (PoS), storage, EVM (Ethereum Virtual Machine), and cryptography capabilities. Heterogeneity in L2 Protocols The diversity in L2 designs has led to challenges in composability and user experience. To address this, Buterin advocated for accelerated standardization across L2s and enhanced interoperability. To incentivize L2 protocols to align with Ethereum’s long-term vision, Buterin suggested dedicating a percentage of L2 revenues to Ethereum’s ecosystem. Mechanisms toward this endeavor range from fee burning and permanent staking to funding public goods. Buterin envisions an Ethereum network capable of housing more decentralized applications (dApps), increasing ETH utility and adoption. In the long term, these improvements could positively impact ETH’s value. ETH Price…

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Filed under: News - @ January 24, 2025 2:26 pm