Vitalik Buterin Challenges Ethereum Layer-2 Narrative, Urges Independence
Ethereum co-founder Vitalik Buterin has issued a stark reality check to the ecosystem's layer-2 (L2) networks, questioning their current role and branding. Buterin argues that as Ethereum's base layer becomes more scalable and cost-effective, the original justification for L2s – to act as "Ethereum but cheaper" – is fading. This has prompted a significant shift in how L2 projects are positioning themselves, moving away from being mere extensions of Ethereum towards becoming independent platforms.
Key Takeaways
- Ethereum's scaling improvements are reducing the necessity for L2s solely focused on cost reduction.
- L2 networks are being urged to offer unique value propositions beyond lower fees.
- Many L2s are rebranding to emphasize their independence from Ethereum's core architecture.
- Buterin distinguishes between L2s that genuinely scale Ethereum and those that are essentially standalone EVM chains.
The Shifting Role of Layer-2s
For years, L2 networks like Arbitrum, Optimism, and Base have been marketed as integral parts of the Ethereum ecosystem, often described as "Ethereum's sidekicks" or "branded shards." Their primary function was to alleviate congestion and high transaction fees on the main Ethereum blockchain by processing transactions off-chain and settling them back on L1. However, Buterin's recent statements suggest this rollup-centric roadmap is becoming obsolete.
Buterin pointed out that Ethereum itself is now scaling significantly, with low fees and increasing gas limits. He argued that networks connected to Ethereum via multisig bridges, even those offering high transaction speeds, are not truly "scaling Ethereum." Instead, he believes they should be viewed as independent platforms that may use Ethereum as a service for settlement or verification.
L2s Embrace Independence
In response to Buterin's critique, leaders within the L2 space are adapting their messaging. Projects that once proclaimed "Arbitrum is Ethereum" or "Base is Ethereum" are now emphasizing their distinct identities. Steven Goldfeder, co-founder of Offchain Labs, stated, "Arbitrum is not Ethereum," while Jesse Pollak, head of Base, noted that L2s "can’t just be ‘Ethereum but cheaper’" and must offer more value.
This pivot is seen by many L2 proponents not as an existential threat, but as a necessary evolution. Ben Fisch, co-founder and CEO of Espresso Systems, commented that Buterin's remarks signal the start of L2s "flourishing and becoming independent from Ethereum." He added that while an L2 might use Ethereum as a service, it is "by no means beholden to Ethereum."
Redefining Value Beyond Scaling
Buterin outlined two compelling directions for L2 development: tightly integrated "app-specific" systems where Ethereum plays a crucial role in settlement, and institutional or application-driven chains that publish proofs to Ethereum. He stressed that these systems should be transparent about their connection to Ethereum and the guarantees they provide.
Polygon CEO Marc Boiron echoed this sentiment, stating that Buterin's point was not that rollups are a mistake, but that "scaling alone is insufficient." The focus, he believes, should be on building unique blockspace tailored for real-world use cases like payments, where reliability and consistency are paramount. Jing Wang, co-founder of the Optimism Foundation, compared L2s to standalone web services, each customized for specific needs, with Ethereum serving as an open settlement standard.
The debate highlights a maturing L2 ecosystem, pushing projects to define their unique value propositions and clarify their relationship with the Ethereum base layer.