Ethereum was cheaper than anticipated in 2020, and rollup decentralization was slower than promised in 2021. These two realities are forcing the ecosystem to rewrite the aim of “Layer 2.”
Vitalik Buterin’s latest submit on Ethereum analysis bluntly states this transformation. Ethereum’s authentic imaginative and prescient of a Layer 2 (L2) blockchain as a “branded shard” is now not viable, and the ecosystem wants a brand new path ahead.
Nevertheless, this isn’t a waiver. As an alternative, this re-layers expectations and extra clearly defines what several types of rollups are literally constructing.
What’s at stake now could be the brand new job description, because the assumptions underlying the rollup-centric roadmap have weakened.
Stage 2 is uncommon
L2BEAT gives the clearest framework for understanding rollup decentralization by means of the Phases system.
Stage 0 signifies that the coaching wheels stay in place and significant belief assumptions persist.
Stage 1 represents partial decentralization with stronger escape hatches and proof ensures, however nonetheless retains significant upgrades or governance belief.
Stage 2 is a “no coaching wheels” milestone, the place important security traits are enforced by code relatively than by arbitrary actors.
That is illustrated by the present distribution of worth secured throughout the L2 ecosystem. Based on the L2BEAT rollup scaling overview, roughly 91.5% of the listed values are included within the Stage 1 rollup, 8.5% are included in Stage 0, and roughly 0.01% are included in Stage 2.
The highest three rollups by worth account for about 71% of the full, indicating that “stage 2 progress” is basically depending on the choices of some of the biggest initiatives, relatively than what smaller experimental chains attempt.
A central hurdle is whether or not the proof system could be overridden and whether or not upgrades will face vital delays and constraints.
Improve discretion stays frequent within the largest rollups, and shifting past that’s proving to be slower and tougher than the optimism of 2020-2021 anticipated.
Some initiatives have made it clear that they might not want to proceed past Stage 1 as a consequence of regulatory necessities that require absolute management, in addition to technical constraints associated to zkEVM security.
Whereas it is a reputable product choice for sure buyer bases, it makes clear that these chains aren’t “scaling Ethereum” within the sense that their rollup-centric roadmaps initially meant.
| venture | stage | TV ($) | proof kind | Improve key/existence of safety council? | Precautions |
|---|---|---|---|---|---|
| Arbitrum One | 1 | 16.16B | optimistic | sure | Emergency passes can skip delays |
| base chain | 1 | 10.99B | optimistic | sure | Upgrades authorised by a number of stakeholders. No delay |
| OP mainnet | 1 | 1.88B | optimistic | sure | Safety Council Prompt Improve Authority |
| author | 0 (app chain) | 1.27B | legitimate | sure | 21 days delay, emergency could also be 0 |
| stark internet | 1 | 676.17M | legitimate | sure | Safety Council could be upgraded immediately |
| ink | 1 | 523.71M | optimistic | sure | Safety Council + Basis Approval. No common delays |
| Linea | 0 | 492.93M | legitimate | sure | Multisig could be upgraded immediately |
| ZKsync period | 0 | 417.07M | legitimate | sure | Emergency board can keep away from improve delays |
| Katana | 0 | 297.94M | legitimate | sure | Safety Council can get rid of improve delays |
| unichain | 1 | 168.81 million | optimistic | sure | There isn’t a exit window for normal upgrades. prompt energy |
Why the constraint was modified
On October 2, 2020, the Fellowship of Ethereum Magicians’ submit “Rollup-centric Ethereum Roadmap” described the unique paper.
Gasoline costs rose, some purposes had been compelled to close down, and the ecosystem got here to the conclusion that it will be an “all-in roll-up” within the quick to medium time period.
Base layer scaling should prioritize rollup information capability, and customers more and more stay on L2.
Since then, two arduous information have modified. First, L1 is at present considerably cheaper. Etherscan reveals that the 7-day common buying and selling payment is round $0.35 and the fuel snapshot is a fraction of 1 gwei.
On January sixteenth, Ethereum hit an all-time excessive of two,885,524 transactions in a single day. The narrative is “busier, cheaper”, the precise reverse of the 2020 disaster that motivated the rollup-centric roadmap.
Second, L1 govt capacity has improved. Ethereum’s block fuel restrict was raised from the long-standing restrict of 30 million to roughly 60 million after in depth validator signaling in late 2025.
In blocks of about 12 seconds, 60 million gases equals about 5 million gases per second.
Formidable neighborhood discussions have talked about a lofty objective of 180 million fuel, equal to a three-fold improve, but it surely stays a route relatively than a dedication.
Clear Interpretation: The 2020 assumption that “L1 does not scale to most customers” is weakened by at this time’s pricing construction. This creates room for L2 to be a variety of trade-offs between safety and sovereignty, relatively than competing solely on value as “shards” which might be all almost an identical.
L2 as a spectrum, not a clone
The reframing proposed by Buterin treats L2 as occupying all the spectrum.
On one finish, we’ve got Ethereum’s full belief and trust-backed chain, which has distinctive traits akin to not solely EVM clones, but additionally privacy-focused programs, non-EVM execution environments, or ultra-low latency sequencers.
On the different finish, there are alternatives for various ranges of Ethereum connectivity that customers and purposes can select from primarily based on their particular wants.
The brand new minimal normal is straightforward. If you’re working with ETH or Ethereum issued belongings, it’s essential to attain at the very least stage 1.
In any other case, it is simply one other L1 with a bridge, so it is best to name your self that. The hurdle to differentiation is much more tough: being the perfect in one thing apart from “low cost EVM.”
Examples Buterin cited embrace privateness, application-specific effectivity, actually excessive scaling past even prolonged L1, basically completely different designs for non-financial purposes akin to social and identification programs, ultra-low latency sequencing, or computationally unverifiable options akin to built-in oracles and decentralized dispute decision.
The mechanisms driving this are nonetheless below investigation. “Native rollup precompilation” permits Ethereum to confirm normal zkEVM proofs inside the protocol.
For the “EVM Plus Further Options” rollup, because of this common EVM validation is completed trustlessly on the protocol degree, and the rollup solely must certify the customized extensions individually.
This permits for stronger interoperability and doubtlessly paves the best way for synchronous composability, the place contracts between completely different rollups can work together inside the identical transaction. Nevertheless, that is nonetheless a analysis trajectory and never an launched characteristic.
The January sixteenth submit “Combining base rollups and prechecks for synchronous composability” and the February 2nd submit “Synchronous composability between rollups with real-time proofs” illustrate the design area, however don’t signify modifications to the shipped protocol.
Three buckets seem
As soon as this reorganization takes maintain, we anticipate rollups to be break up into extra distinct classes.
The primary bucket is a stage 2 monitoring settlement rollup that maximizes Ethereum’s safety inheritance.
These initiatives deal with “scaling Ethereum” as their core mission and purpose to attain code-enforced ensures with minimal discretionary governance.
The second bucket is a regulated or managed execution atmosphere.
These are optimized for compliance, allowing, or particular organizational necessities. By design, it could by no means transfer past stage 1, and it must truthfully promote that management as a characteristic, relatively than pretending to supply full decentralization.
The third bucket is specialised chains optimized for latency, privateness, app-specific execution, or non-financial use circumstances.
Privateness rollups that use zkProofs to cover transaction particulars, ultra-low latency sequencers for buying and selling purposes, or social or identification programs with basically completely different state fashions all fall into this class.
They do not must be EVM appropriate and even economical to justify their existence, they only have to offer worth to customers that they can not get wherever else.
Tasks like Arbitrum One, Optimism, Base, zkSync Period, and Starknet every must resolve which class to pursue. Though the ecosystem is giant sufficient to help all three, the idea that each one L2s carry out the identical perform is fading.
Modifications for customers and builders
For customers, the burden shifts to understanding warranties. Evacuation hatches, improve delays, attestation programs, and censorship resistance are product differentiators relatively than assumed traits.
Wallets and interfaces have to extra clearly label their belief assumptions, and the L2BEAT Phases framework goals to make these assumptions simpler to learn.
For builders, “low cost EVM” has change into a commodity. Differentiation strikes to privateness and customized digital machines, ultra-low latency sequences, app-specific throughput optimization, non-financial purposes in social, identification, or AI contexts, or compliance and permissions as an express product, with out claiming to be “scaling Ethereum.”
As for the broader market story, we are able to anticipate to see a bigger debate about whether or not L2 will really “inherit the safety of Ethereum” relatively than as an aspiration.
This criticism was already a scorching matter amongst rival L1 proponents, and the ecosystem’s recognition that many giant rollups are caught in Stage 1 as a consequence of discretionary governance has given it much more traction.
Is the L2 revolution about to start?
It’s unlikely that Ethereum will see an L2 revolution. As an alternative, retiering happens.
The rollup-centric roadmap assumed that L2 can be almost an identical “branded shards” competing totally on value, whereas L1 would stay costly and capacity-constrained.
That assumption now not holds true. L1 is affordable and increasing, however L2, regardless of stage 2 decentralization, is diverging sooner than it converges in safety fashions and use circumstances.
The brand new path acknowledges that actuality. L2s that retailer ETH or Ethereum-issued belongings should meet at the very least Stage 1 minimal safety requirements. And past that, we have to compete on experience and clear ensures, relatively than pretending to be appropriate.
Analysis on native validation primitives and synchronous composability reveals that Ethereum goals to facilitate that, however these are trajectories, not deployed options.
My job content material has modified.
The minimal normal is to offer dependable safety when coping with Ethereum belongings. The standards for differentiation is being the perfect at one thing and being true to the belief mannequin.
The rollup-centric roadmap has been upgraded to accommodate the truth that L1 is increasing and L2 is extra numerous than the unique imaginative and prescient.
