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Vitalik Buterin Shares Insight on Scaling Ethereum L1 and L2s

Vitalik Buterin Shares Insight on Scaling Ethereum L1 and L2s

U.TodayU.Today2025/01/25 02:00
By:U.Today

In a recent  blog post , Ethereum cofounder  Vitalik Buterin shared details on improving the scalability of the Ethereum layer-1 and layer-2 protocols. Buterin’s comments come amid heightened criticism of the Ethereum Foundation following the asset's declining market capitalization.

Buterin's Ethereum scaling strategy

Over the years, the Ethereum blockchain has become a reputable force in the blockchain space. 

Millions of individuals hold ETH as savings, and many more utilize the asset for payment. The blockchain also features decentralized finance (DeFi) tools that provide millions of consumers with higher yields than the traditional market.

Scaling Ethereum L1 and L2s in 2025 and beyond https://t.co/T36dnaEYXj

— vitalik.eth (@VitalikButerin) January 24, 2025

For Ethereum to continue building up its technical and social properties, Buterin emphasized the need to address challenges facing L2 protocols. 

One primary challenge Buterin noted is that blob space is not expansive enough to cover the L2s and use cases. He also noted another challenge of heterogeneity, which has translated into composability and user experience problems for developers and users.

For the first challenge, Buterin proposed giving Ethereum more blobs. He added that the L1 can do moderate short-term scaling while improving proof of stake, storage, EVM and cryptography.

For the second challenge, Buterin proposed to continue implementing scalability via L2s, ensuring they deliver on their promise. To fulfill this mission, Buterin said L1 needs to accelerate  scaling blobs , moderate the amount of EVM scaling and increase the gas limit.

L2s, on the other hand, must continue to improve security and accelerate the standardization of interoperability. 

Furthermore, Buterin proposed incentivizing layer-2 networks to dedicate a percentage of their revenues to ETH through techniques such as fee burning. Other measures include permanent staking or diverting proceeds to public goods within the Ethereum ecosystem.

Ethereum-to-BTC ratio slips to record lows

Meanwhile, the widely monitored Ethereum-Bitcoin ratio has fallen to 2021 levels. On Monday,  Bitcoin (BTC) hit a record high above $109,000, returning 160% gains to investors over the past year. 

However, Ethereum recorded only 51% gain within the same period. The price analysis revealed the asset is currently down 30% below its 2021 peak.

With the scaling plan, Ethereum may house more dApps that will see increased ETH usage. In the long term, the impact on the price will be positive.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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