Ethereum co-founder Vitalik Buterin has revealed that Layer 2 solutions have dramatically improved the network's capabilities, scaling transaction capacity by 17 times while reducing fees. However, key technical hurdles remain as the platform evolves.
In a recent blog post, Buterin highlighted how Layer 2 protocols have matured since 2019, securing billions in value and achieving greater decentralization. Yet the platform faces growing pains, particularly around data storage capacity and interoperability between different Layer 2 networks.
The current "blob space" - Ethereum's data storage and processing resource - is struggling to meet existing demand from Layer 2 solutions. This bottleneck could restrict future growth unless addressed.
Another challenge stems from the diverse ecosystem of Layer 2 chains. While Ethereum originally envisioned uniform scaling through sharding, the reality has become a fragmented landscape of networks with varying standards and infrastructure needs.
Buterin outlined several priority areas for improvement:
- Expanding blob space and computing limits
- Enhancing Layer 2 security and censorship resistance
- Building better bridges between different Layer 2 networks
- Creating a more unified user experience across chains
On the economic front, Buterin emphasized strengthening ETH's role as a "triple-point asset" serving as a store of value, medium of exchange, and unit of account. This includes establishing ETH as the primary asset across both Layer 1 and Layer 2 ecosystems.
The roadmap also calls for Layer 2 networks to contribute fees back to the broader Ethereum ecosystem, potentially through fee burning, staking, or funding public goods. This could create sustainable funding streams while maintaining flexibility for different types of applications.
Despite the challenges, Buterin remains focused on preserving Ethereum's decentralized nature while scaling the network. The goal is to make Ethereum feel like one cohesive system to users, rather than a collection of separate chains.