Vitalik Buterin’s Shift on Ethereum Layer 2 Networks: Emphasizing Decentralization

The Evolution of Ethereum Layer 2 Networks: Vitalik Buterin’s New Stance

In the realm of blockchain technology, there’s a significant difference between the bully pulpit and the silent treatment. Recently, Ethereum co-founder Vitalik Buterin took to X to announce a transformative shift in how he will address layer 2 (L2) networks in his public communications. From now on, he will exclude mentions of projects that do not meet a certain standard of decentralization. To gain his attention, these projects must achieve what he refers to as “Stage 1,” a benchmark he articulated in a blog post several years ago.

“Starting next year, I plan to only publicly mention (in blogs, talks, etc.) L2s that are stage 1+,” Buterin stated. “It doesn’t matter if I invested, or if you’re my friend; stage 1 or bust.” This declaration marks a clear intent to elevate the conversation around decentralization within the Ethereum ecosystem.

Back in 2022, Buterin introduced a framework categorizing rollups into various stages based on their degree of decentralization. This hierarchy is designed to illustrate how many rollups rely on “training wheels” during their initial phases, often launching their protocols to users before attaining full decentralization.

“While a project’s technology is still maturing, it often launches prematurely to stimulate ecosystem growth,” Buterin explained in his 2022 blog post. “However, instead of fully depending on its fraud proofs or zero-knowledge (ZK) proofs, these projects might employ a multisig mechanism that ensures a particular outcome can be enforced in case of any code malfunctions.” In blockchain terminology, multisig refers to a security protocol that requires multiple signatures to authorize changes, thus ensuring that a small group can step in under emergency conditions, circumventing the usual consensus processes that validate network transactions.

Transitioning Beyond ‘Training Wheels’

Buterin has categorized L2 projects into three distinct stages, ranging from 0 to 2:

• Stage 0: This stage indicates that a layer 2 network is fully reliant on training wheels.
• Stage 1: At this level, the project has limited training wheels and employs fraud proofs to ensure decentralized transaction validation without relying on a single centralized authority.
• Stage 2: Projects in this category are fully decentralized, having successfully removed all training wheels.

To keep track of the progression of these various L2 protocols, L2Beat serves as a comprehensive dashboard that monitors how different projects rank in terms of these stages. Presently, none of the prominent rollups has achieved the coveted Stage 2 status.

At Stage 1, only a select few projects, including Arbitrum One, OP Mainnet, and zkSync Lite, have managed to reach this benchmark. “The era of rollups being glorified multisigs is coming to an end,” Buterin emphasized on X. “The era of cryptographic trust is upon us.”

For further insights, read: Vitalik Buterin Reflects On Strengths, Weaknesses of Ethereum, ‘Hardening’ the Blockchain