Ethereum co-founder Vitalik Buterin has published a blog post sharing few strategies for Ethereum Layer 1 and Layer 2 expansion citing rollups support as one of the primary aspect. In the blog, Vitalik states, “We need to continue to build on Ethereum’s technical and social attributes, as well as its actual utility.” as he highlighted that Ethereum’s goal is the same as it was on day one: to build a global, censorship-resistant, permissionless blockchain.
Vitalik Buterin Proposes a Strategic Expansion of Ethereum L1, L2
Summary: raise the blobs, work hard on interop and security, think about economics. See the post for more details on each topic.
Ethereum’s future is bright.
— vitalik.eth (@VitalikButerin) January 24, 2025
The 30 year old co-founder wants to focus on one specific impact that is deemed to be very important to Ethereum users in the short and medium term: Ethereum’s scaling strategy, increasing blobs, working to improve interoperability and security, and considering economics.
Vitalik pointed out that scale and heterogeneity are among the two major challenges faced by L2. In the blog, he claimed that a possible shortcut to expansion is to abandon L2, operating through L1, and significantly increasing the gas limit (which can be achieved through multiple shards, or on a single shard). But the shortcut would compromise the pros of Ethereum’s current social structure, which, according to Buterin is “very effective in simultaneously achieving different forms of research, development, and ecosystem building culture”. Therefore, Buterin chose to expand mainly through L2.
Buterin believes that Native Rollups are still an early stage idea and need efforts to make native Rollup precompilation as flexible as possible.
Vitalik Buterin proposed a multi-pronged strategy, to cover all major possible sources of the value of ETH as a triple-point asset including following:
- Position ETH as the Core Asset: Establish ETH as the primary asset of the Ethereum economy (including both Layer 1 and Layer 2). Encourage applications to use ETH as the main collateral.
- Collaborate with L2s: Incentivize Layer 2 solutions to allocate a portion of their fees to benefit the Ethereum ecosystem. This could involve burning fees, staking them for ecosystem funding, or other methods.
- Support Rollups Strategically: Promote rollups that benefit Ethereum’s Layer 1 through mechanisms like MEV (Miner Extractable Value). However, avoid forcing all rollups to fit this model, as not all applications are suited to it.
- Explore Revenue from Blobs: Increase the blob count, consider setting a minimum blob price, and treat blobs as another potential revenue source. For instance, if blob fees remain steady while blob count rises to 128, Ethereum could burn 713,000 ETH annually. However, since demand is unpredictable, this alone should not be relied upon.
This multi-faceted approach ensures a balanced and sustainable strategy for ETH’s growth as a triple-point asset.
Also Read: Ethereum Price Prediction 2025, 2026 – 2050
