Ethereum Achieves 17x Scaling With Layer 2, But Challenges Remain, Says Buterin

Layer 2 protocols have played a critical role in scaling the ethereum network. Blockchain co-founder Vitalik Buterin noted that Layers 2 in 2025 represents a significant evolution since its experimental beginnings in 2019, having achieved certain decentralization milestones, secured billions of dollars in value, and increased blockchain transaction capacity by 17-fold. ethereum, all simultaneously. lowering rates.

However, Buterin said challenges remain, particularly around scaling and heterogeneity.

Blob Space and interoperability challenges

in his last <a target="_blank" href="https://vitalik.eth.limo/general/2025/01/23/l1l2future.html” target=”_blank” rel=”noopener” data-wpel-link=”external”>blog postButerin noted that ethereum's current blob space, a resource for storing and processing data on the blockchain, barely meets the demands of current Layer 2s and their use cases. As such, this limitation could hinder the platform's ability to accommodate future growth.

Additionally, Layer 2 heterogeneity creates challenges when it comes to interoperability, composability, and user experience.

While ethereum's initial vision for scaling involved a system based on fragments of homogeneous blockchains, Buterin noted that Layers 2 have evolved into a fragmented ecosystem of chains created by different actors, each with different standards and requirements. of infrastructure.

To address these challenges, the ethereum co-founder outlined several key steps. On the Layer 1 side, ethereum must accelerate blob scaling and expand ethereum virtual machine (EVM) and gas limits to handle activities such as testing, large-scale DeFi, deposits, withdrawals, and mass exit scenarios.

On the Layer 2 front, he highlighted the need to improve security, ensuring guarantees such as censorship resistance, slight client verifiability, and the absence of trusted parties. Interoperability between Layer 2 and wallets should also be prioritized to enable easy cross-chain interactions through standardized addresses, message passing protocols, bridges, and efficient cross-chain payments.

For users, ethereum should feel like a unified ecosystem rather than a collection of disparate chains, Buterin added.

Strengthening eth as a triple point asset

Buterin also stated that ethereum's future as a strong triple-point asset (functioning as a store of value, medium of exchange, and unit of account) requires a “multi-dimensional” strategy to maximize the value of eth.

The first step is to solidify eth as the primary asset across the combined Layer 1 and Layer 2 ethereum economy. This includes prioritizing eth, the primary collateral for decentralized applications and financial ecosystems.

Next comes incentivizing Layer 2s to allocate a portion of their fees to the broader ethereum ecosystem, which could lead to sustainable funding. This may involve burning some of the fees, staking them, or funneling the profits into public goods for the ethereum network.

Third, while rollups offer opportunities for Layer 1 to capture value through MEV, it is important to maintain flexibility, recognizing that not all rollups can adopt this model due to different application requirements. Finally, ethereum could explore increasing the blob count as a potential revenue source.

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