Vitalik Buterin: New Era for Layer 2 Stage 1+ Projects

Vitalik Buterin, the co-founder of Ethereum, has publicly declared that effective next year, he will exclusively endorse Layer 2 solutions that have advanced beyond their initial developmental stages.

This action is purported to improve the security and reliability of the Ethereum ecosystem, centered around various rollup initiatives. Nevertheless, these initiatives depend on early-stage mechanisms he characterizes as “training wheels.”

Buterin asserts that this determination is universally applicable, irrespective of personal investments or friendships. He contends that this method is indispensable for transitioning from rollups as “glorified multi-sigs” to a future of cryptographic trust that minimizes human oversight.

Vitalik Buterin’s New Layer 2 Standard: From Training Wheels to Stage 1+

Buterin’s initiative is designed to classify rollups into three distinct stages based on their reliance on human intervention versus completely automated, trust-minimized systems, using a milestone-based schema.

Rollups, intended to accelerate the processing of transactions off the primary Ethereum blockchain to reduce costs and improve speed, frequently commence with substantial manual supervision to address unanticipated issues or bugs.

Nevertheless, this initial reliance on multisigs—a group of signatories that can collectively override the system—presents risks that Buterin and other community members believe must be mitigated as technology matures.

Most roll-up initiatives are currently in Stage 0, with complete training wheels. Multisigs are essential at this level, as they enable developers to mitigate potential errors without the necessity of entirely functional fraud or validity proofs.

The principal objective at this juncture is to initiate projects. This will enable the development of ecosystems even when the underlying technology is not yet entirely reliable.

Stage 1, which Buterin now insists upon as a minimum criterion for public endorsement, is a substantial advancement.

Rollups must possess operational fraud or validity proofs to validate this level’s state origins posted to the blockchain.

The multisig override mechanism is still in place. Still, it must adhere to rigorous criteria, such as a 75% threshold for decision-making and a requirement that at least 26% of the council members be independent of the roll-up team.

Can Projects Maintain the New Standards?

Buterin emphasized that numerous zero-knowledge rollup (ZK-rollup) teams are on course to achieve Stage 1 by the end of the year, a milestone he considers essential for the broader adoption and trust in Ethereum’s scalability solutions.

Nevertheless, he advised against abruptly abandoning these protective measures until there is assurance regarding the security of the proof systems.

He emphasized that his involvement in multisigs has been incident-free regarding life failures. However, the industry must progress toward a future where code, rather than humans, serves as the ultimate arbiter.

The optimal endpoint for rollup technology is Stage 2, as determined by most community comments. This stage ensures that no group of actors can alter the state dictated by the rollup’s code, irrespective of their agreement.

Buterin’s proposal is consistent with a broader initiative within the Ethereum community to prioritize security and trust in decentralized finance (DeFi), particularly in light of the current scandal and the community’s pressure on him due to his substantial Ethereum sales.

Buterin has been associated with a succession of ETH sales totaling 950 ETH, valued at approximately $2.28 million, since August 30, according to a recent report.

His associated wallet, which received 3,800 ETH valued at approximately $9.8 million, has been conducting sales in smaller, strategic quantities rather than large transactions. The most recent transaction involved 190 ETH, converted to $441,971 in USDC, bringing the total ETH sold to 950.

Buterin has responded to the transactions today, as the community anticipated.

He asserted that the transaction was an additional donation for his philanthropic endeavors.