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Buterin warns some Layer-2 networks risk failure without upgrades

Buterin warns some Layer-2 networks risk failure without upgrades

GrafaGrafa2024/09/13 00:05
By:Liezl Gambe

Ethereum (CRYPTO:ETH) co-founder Vitalik Buterin has issued a stark warning to several Layer-2 (L2) networks, stating they could fail if they do not meet specific decentralization standards. 

Buterin's criteria are based on a decentralization scale that evaluates the maturity of L2 rollups, which are critical for Ethereum's scalability by offloading data processing from the core blockchain

Buterin emphasized that only L2 networks achieving “stage 1+” on his scale will be recognized, signaling an end to what he calls “the era of rollups being glorified multisigs.” 

He added, “Stage 1 (75% threshold on the council to override the proof system, 26%+ of the council must be outside the rollup team) is a very reasonable moderate milestone." 

This progression aims to enhance security and decentralization, moving towards “cryptographic trust.” 

The framework proposed by Buterin categorizes L2 rollups into three stages. 

Stage 0 is when a rollup is fully controlled by its operators, or “full training wheels.” 

Stage 1 introduces smart contract governance with a Security Council to manage potential bugs, signifying “limited training wheels.” 

Stage 2 achieves full smart contract governance with a permissionless fraud-proof system, marking “zero training wheels.” 

According to data from L2Beat, rollups like Arbitrum, OP Mainnet, dYdX v3, and Zksync Lite have reached Stage 1, while DeGate V1 and Fuel V1 have advanced to Stage 2, indicating full decentralization. 

However, networks such as Base, Blast, Scroll, Zksync Era, Linea, and Starknet are still at Stage 0 and face pressure to meet the necessary thresholds by December. 

“Multiple ZK-rollup teams have told me they’re on track to be stage 1 by year-end. I’m excited to see that happen,” Buterin noted. 

In related news, Buterin recently sold 190 ETH, explaining, “That sale from yesterday... was triggered by an automatic cowswap twap order that was set up way back on Aug 29.” 

Over the past two weeks, he sold 950 ETH worth approximately $2.27 million and deposited 2,851 ETH, valued at $6.73 million, into the Aave lending market

At the time of reporting, the Ethereum (ETH) price was $2,360.06.

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