Vitalik Buterin discusses Ethereum’s value maintenance during L2 growth in interview

Vitalik Buterin, one of the founders of Ethereum, recently shared his thoughts on how the Ethereum network can remain valuable in the face of increasing dominance by Layer 2 (L2) solutions. According to him, there are several key areas that need attention to ensure the success of Ethereum in the future.

Scalability is a critical issue that Vitalik emphasized. Ethereum Layer 1 (L1) has struggled with scalability challenges, resulting in high fees and slow processing times due to congestion on the network. Despite efforts to implement solutions like layer 2 scaling and sharding, Ethereum has faced limitations compared to newer blockchains like Base and Solana that offer faster and cheaper transactions. Vitalik stressed the importance of scaling Ethereum’s Virtual Machine (EVM) and increasing the gas limit on L1 to handle the heavy traffic on the network effectively, especially as L2 solutions take on more of the load.

One of the key concepts Vitalik discussed is the use of “blobs” on Ethereum. Blobs are data structures designed to store large amounts of data not directly related to smart contract execution. They are crucial for scaling the network efficiently, particularly with upgrades like sharding. By storing data in blobs, Ethereum can handle more information and transactions without overburdening the main chain, leading to increased network efficiency.

Security is another area that Vitalik emphasized, particularly for L2 solutions. As Ethereum moves towards sharding, L2 solutions must enhance their security measures to provide guarantees similar to the main network. Censorship resistance, light client verifiability, and eliminating trusted third parties are essential features for maintaining Ethereum’s decentralized nature and building user trust as the network expands. Vitalik suggested using multiple proof systems and formal verification to improve security and collaboration among developers to streamline the process and enhance compatibility among different systems.

Interoperability and the economic model of ETH were also key points in Vitalik’s discussion. To create a more cohesive ecosystem, he stressed the importance of improving interoperability among Ethereum’s various layers. By standardizing interoperability and addressing issues like chain-specific addresses and cross-chain payments, developers can enhance user interaction with the network. Additionally, Vitalik highlighted the need for diversity among L2 solutions to cater to a wide range of use cases and strengthen the ecosystem.

As L2 solutions become more prevalent, Vitalik called on developers and stakeholders to evaluate Ethereum’s economic model to ensure the retention of ETH’s value. Creating new models for value accrual will be essential to maintain Ethereum’s native token as the focal point in an L2-centric environment. He emphasized the need for continued work and collaboration to propel Ethereum towards a future where millions can benefit from crypto assets and decentralized applications.