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Key Highlights

Ethereum co-founder Vitalik Buterin has called for a fundamental rethink of how Layer-2 networks fit into the Ethereum ecosystem, arguing that the network’s original rollup-centric vision no longer makes sense.

In a detailed X post on Tuesday, Buterin said two developments have changed Ethereum’s scaling calculus: the slower-than-expected progress of Layer-2 networks toward full decentralization and rapid improvements in Ethereum’s base layer. With transaction fees remaining relatively low and gas limits expected to rise significantly in 2026, he said Ethereum no longer needs Layer-2s to function as “branded shards” of the network.

Layer-2 networks such as Arbitrum, Optimism, and Base are built on Ethereum to help it process transactions faster. Buterin compared Ethereum’s main network to a crowded main hall at a conference.

He said layer-2s are like overflow rooms where people can join in without crowding the main hall while still staying connected. However, he said that many L2s have struggled to reach higher levels of decentralization, and some may never meet the security standards required to act as true “extensions” of Ethereum.

Why some Layer-2s don’t fully scale Ethereum

Buterin criticized systems that connect to Ethereum using multisig bridges, saying they don’t fully scale Ethereum. “If you create a 10,000 TPS EVM where its connection to L1 is mediated by a multisig bridge, then you are not scaling Ethereum,” he wrote. He added that some layer-2s may stay centralized on purpose to meet regulatory or customer needs. 

“This may be doing the right thing for your customers. But it should be obvious that if you are doing this, then you are not ‘scaling Ethereum’ in the sense meant by the rollup-centric roadmap,” Buterin said.

Rethinking the role of Layer-2s

Instead of treating L2s as required “branded shards,” Buterin said they should be seen as a range of networks. Each network can have different levels of connection to Ethereum and offer different benefits. These benefits would include faster confirmations, more private transactions, special apps, etc. What is important is that users should be made aware of what they are getting in terms of benefits.

This change in perception comes at a time when Ethereum is being challenged by other scaling solutions like Solana, which uses a single scaling method, as well as changes in the Ethereum Foundation in 2025. Researchers are also working on how to improve the base layer and upgrade the L2s, such as through PeerDAS, to help users access data more easily.

Despite the fact that there are several L2s that have been rolled out, very few of them have managed to go past their early stages of decentralization. Base, an L2 incubated by Coinbase in 2023, advanced to Stage 1 last year by decentralizing its governance and enabling permissionless fault proofs.

According to Buterin, there are several challenges that have been affecting L2s, and as a result of this, some of them may not be able to go past Stage 1 due to user or regulatory requirements.

Also Read: All Ethereum Private Keys Are Public—Good Luck Finding One

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