Ethereum’s Vitalik Buterin Sets Strict Standards for Layer 2 Rollups

Ethereum co-founder Vitalik Buterin flagged a select list of Layer-2 (L2) networks doomed to fail unless they advance. He refers to his threshold for measuring different stages of L2s based on a decentralization scale.

L2s facilitate more efficient and flexible delegation of data processing tasks in support architecture. As a result, the core blockchain protocol does not experience congestion, making scalability possible.

Vitalik Buterin’s Message to L2s: “Stage 1 or Bust”

Vitalik Buterin stated that he would only recognize Layer-2 (L2) networks that reach “stage 1+” maturity, offering a limited opportunity for “new genuinely interesting projects.” This ultimatum aligns with Buterin’s vision of advancing cryptographic trust, marking a new era in blockchain development.

The stages refer to a framework for assessing the maturity of Layer-2 (L2) rollups, based on milestones proposed by Buterin. In Stage 0, the rollup is fully controlled by its operators, which is referred to as having “full training wheels.”

Stage 1 introduces smart contract governance, though a Security Council remains in place to handle potential bugs, marking “limited training wheels.” Finally, in Stage 2, the rollup is fully governed by smart contracts with a permissionless fraud-proof system, achieving “zero training wheels.” This progression reflects increasing decentralization and security.

“Stage 1 (75% threshold on the council to override the proof system, 26%+ of the council must be outside the rollup team) is a very reasonable moderate milestone. The multisigs I am in have not had a single liveness failure in years, let alone 26%. The era of rollups being glorified multisigs is ending. The era of cryptographic trust is upon us,” Buterin explained.

L2Beat, an analytics and research website focused on Ethereum layer-2 scaling, lists several rollups that have reached Stage 1 or higher. These include Arbitrum, OP Mainnet, dYdX v3, and Zksync Lite, all of which are in Stage 1. Meanwhile, Stage 2 rollups, which have achieved full decentralization with “zero training wheels,” include DeGate V1 and Fuel V1.

Read more: Layer-2 Crypto Projects for 2024: The Top Picks

Meanwhile, Base, Blast, Scroll, Zksync Era, Linea, and Starknet remain in the Stage 0 threshold. These rollups may face challenges unless they are among the select few to progress further. According to Buterin, they could meet the necessary threshold by December.

“Multiple ZK-rollup teams have told me they’re on track to be stage 1 by year-end. I’m excited to see that happen,” Buterin noted.

As a side note, Buterin addressed concerns regarding his recent Ethereum transactions. On September 11, he sold 190 ETH, valued at $441,971.

“That sale from yesterday (by a bio-defense group I fund) was triggered by an automatic cowswap twap order that was set up way back on Aug 29. That was the last one,” he explained.

Read more: Layer 1 vs. Layer 2: What Is the Difference?

Lookonchain reported that over the past two weeks, Buterin sold a total of 950 ETH, worth approximately $2.27 million. Additionally, he deposited 2,851 ETH, valued at $6.73 million, into the Aave lending market.