Ethereum Achieves 17x Scaling with Layer 2, but Challenges Persist, Says Buterin

Layer 2 protocols have performed a important position 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.

Nonetheless, Buterin acknowledged that challenges stay, significantly round scaling and heterogeneity.

Blob Area and Interoperability Challenges

In his newest blog post, Buterin identified that Ethereum’s present blob area – a useful resource for storing and processing knowledge on the blockchain – barely meets the calls for of right now’s Layer 2s and their use circumstances. As such, this limitation might hinder the platform’s potential to accommodate future development.

Moreover, the heterogeneity of Layer 2s creates challenges in the case of interoperability, composability, and person 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 handle these challenges, the Ethereum co-founder outlined a number of key steps. On the Layer 1 aspect, Ethereum should speed up scaling blobs and broaden the Ethereum Digital Machine (EVM) and gasoline limits to deal with actions corresponding to proofs, large-scale DeFi, deposits, withdrawals, and mass exit eventualities.

On the Layer 2 entrance, he careworn the necessity for improved safety, guaranteeing ensures corresponding to censorship resistance, mild consumer verifiability, and the absence of trusted events. Interoperability throughout Layer 2s and wallets should even be prioritized to allow straightforward interactions throughout chains by way of standardized addresses, message-passing protocols, bridges, and environment friendly cross-chain funds.

For customers, Ethereum ought to really feel like a unified ecosystem slightly than a set of disparate chains, Buterin added.

Strengthening ETH as a Triple-Level Asset

Buterin additionally acknowledged that Ethereum’s future as a robust 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 purposes 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 may occasionally 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 by way of MEV, it’s essential to keep up flexibility, recognizing that not all rollups can undertake this mannequin attributable to totally different software necessities. Lastly, Ethereum might discover elevating the blob rely as a possible income stream.