Vitalik Buterin, the creator of the Ethereum blockchain, has always been vocal on his social media pages regarding updates and upcoming projects. However, one of his latest posts on the X platform suggests he’s ready to take things to the next stage and move forward with decentralization.
According to the post, his strategy for 2025 will change regarding supporting the crypto community. He decided to let go of projects that didn’t meet his criteria of minimum decentralization features. His ideas about the different layers of decentralization were posted in 2022, as he wanted to create a way to distinguish between the numerous rollup roll projects, whether optimistic or ZK.
Based on his statements, developers might not rely on fully trusted and decentralized models, which is the opposite of what he envisioned for Ethereum. Of course, his criteria won’t affect the ETH prediction, but it might pose reluctance from some Ethereum users.
Let’s see what the deal is about.
Vitalik proposes three decentralization stages
Based on his post two years ago, Vitalik encouraged rollup projects to have a roadmap to offer more trust to users and push the ecosystem towards certain milestones and decentralization.
The scheme starts with stage zero, also known as complete training wheels, in which the project is already a rollup and transactions like on-chain. At the same time, the project should provide a roll-up full node handling the Layer 1 chain.
The first stage is called limited training wheels, and it requires a running fraud-proof scheme, a multi-sig-based override mechanism, and an upgrade mechanism. Finally, the second stage, or no training wheels, should have code with no bugs that no one can change with a state root. The second stage happens when the rollups have independent implementations from the state transition function.
Why is Vitalik proposing this Layer 2 requirement now?
In his social media post, Vitalik stated that in 2024, he’d no longer support rollup projects at stage zero because they tend to rely on the multi-sig key, which may give a group of people access to make changes in the infrastructure by bypassing the consensus.
That’s why rollups at the first stage are better: They work with fraud proofs that don’t rely on a single centralized system. Stage two projects are fully decentralized. No projects have reached this high, but projects like Arbitrum One or OP Mainnet are at the first stage, so they’re moving towards total decentralization.
Looking forward for Layer 3 solutions
Layer 2 solutions have become the most popular scaling solution on the blockchain as developers can build them on top of the original blockchain, so transactions happen off-chain. Of course, sharding, sidechains, and plasma are also efficient, but something’s missing.
This is something that the Layer 3 solution technology might be able to provide. Experts know that the blockchain trilemma has yet to be solved, meaning blockchains are far from reaching decentralization, security, and scalability simultaneously. Layer-1 solutions have scalability issues, while Layer-2 scaling blockchains present potential security trade-offs.
Therefore, Layer 2 scaling blockchains might solve both of these problems. The concept is extinction to the first two, adding protocols and networks that advance operations on the first and second scaling layers.
L3 blockchain has the following features:
- Superior functionalities;
- Optimized scalability and efficiency;
- The ability to tailor functions for different industries;
L3 blockchain solutions would be efficient for decentralized finance protocols, cross-chain protocols, oracles, and data services. However, their technology is still developing, as its complexity is considerable, and they would not be compatible with our infrastructures.
But should we rush the decentralization adoption?
Centralized systems and networks have done so much for us in the past decades as they established the digital realm we rely on today. Unfortunately, it’s slowly becoming obsolete as customer demand changes and trends shift. One of the best examples to showcase this situation is GDPR (General Data Protection Regulation), established in Europe, through which all companies and institutions had to be more responsible for their customers’ data. Regulations were needed to protect customers’ personal information.
That’s a significant issue in centralized systems ━, it’s bureaucratic leadership that requires one change after another to keep up with the world’s fast pace. Control is inefficient, and delays are everywhere.
On the other hand, decentralization has changed everything we know about control in the online environment. Since blockchains work through multiple nodes across worldwide locations, their common goals ensure the ecosystem is scalable and resilient.
Decentralized systems have no central authority, and nodes operate independently, reducing risks and enhancing scalability. One node’s failure has little impact on the system.
Is the future decentralized?
Crypto experts and enthusiasts in the industry see decentralization as a pioneer for the future, where innovative technology will replace our current inefficient systems. Indeed, our technologies, tools, and software are starting to hinder processes instead of speeding them up, especially when it comes to creating content, manufacturing processes, and such.
Blockchain decentralization can adapt new business core principles by bringing a unique approach to leadership and control. At the same time, it can enhance decision-making and collaboration.
Nevertheless, blockchain decentralization will face several challenges in its adoption. To efficiently manage it, we would need to change all our infrastructures and laws and employ new talent, which is a considerable effort.
Of course, global developers must work together to mitigate blockchain limitations, from scalability and security to energy consumption and implementation costs. The skills gap will also have to close by the time we decide to implement decentralization because this technology is quite complex and requires vast knowledge to employ.
What do you think about Vitalik Buterin’s decision on decentralization?
In a recent social media post, Vitalik Buterin, Ethereum’s creator, stated he will no longer support rollup projects that don’t meet its criteria and reach at least the first stage of his schema. He considers these projects not decentralized enough, and he will advocate for those who prioritize it since it’s the only way to push decentralization technology in our centralized and flawed world.
Lynn Martelli is an editor at Readability. She received her MFA in Creative Writing from Antioch University and has worked as an editor for over 10 years. Lynn has edited a wide variety of books, including fiction, non-fiction, memoirs, and more. In her free time, Lynn enjoys reading, writing, and spending time with her family and friends.
