Vitalik Buterin steps up pressure on Layer2 networks to accelerate decentralization

Vitalik Buterin steps up pressure on Layer2 networks to accelerate decentralization

Ethereum co-founder Vitalik Buterin took to social media to demand greater decentralization for Layer2 projects in his blockchain ecosystem. 

In a recent keynote address at X, Ethereum co-founder Vitalik Buterin elevated the conversation around Layer2 network decentralization by laying out clear criteria that projects must meet to be considered worthy of public mention. 

In his post, Buterin wanted to highlight the importance of decentralization in Ethereum's infrastructure, based on a hierarchy that divides projects into different stages. In November 2022, Buterin shared a blog post outlining criteria for decentralization in Layer2. 

Vitalik Buterin and the decentralization of Layer2 projects

Recently, Buterin went to X to announce that starting next year he will only publicly mention those Layer2 projects that reach at least “Stage 1” of decentralization. His decision is framed with a clear commitment to the evolution and robustness of the Ethereum ecosystem, where decentralization is seen as a fundamental pillar.

Buterin assured that he will only make public mentions of Layer2 projects that are classified as “Stage 1” or higher of decentralization. He further emphasized that no matter what the project is, his goal in prioritizing decentralization is to encourage development and true trust in the blockchain ecosystem, avoiding falling into the trap of being simply “glorified projects,” as he himself has put it.

“Starting next year, I plan to publicly mention only L2s that are Stage 1 or higher. It doesn’t matter if I’ve invested in them or if they’re my friends; Stage 1 only or nothing.”, Buterin said, underlining the seriousness of his stance. 

Buterin also highlighted that several ZK-rollup project teams are heading towards Stage 1 of decentralization, and that it will be something very interesting to see later this year. He also explained that for those nascent projects, which have a truly interesting value proposition for the crypto community, he will give a “grace period” for public mentions on social networks, talks, conferences, among others. 

Criteria for Ethereum Layer2 decentralization

Buterin's proposal to classify the decentralization of rollups is based on a three-stage scheme which aims to evaluate the degree of decentralization of each project. 

In the first of these stages, the Stage 0, a rollup relies entirely on “training wheels,” i.e. centralized control mechanisms that can interfere with the operation of the protocol. In the Stage 1, the project has limited fraud proofs and begins to implement mechanisms that minimize trust in centralized entities. Finally, the Stage 2 represents a state of complete decentralization, where control is completely transferred to the users and the code.

According to Buterin, many projects launch their protocols before they are fully ready, using these “training wheels” to allow the ecosystem to begin to form. However, this practice can put the integrity and trust in the protocols at risk, making the transition to decentralization truly critical to moving towards an era of absolute trust in the crypto industry.

The urgency of decentralization in the Ethereum ecosystem

The pressure Buterin is putting on Layer2 projects reflects an urgent need within the Ethereum ecosystem to move towards greater decentralization. Reliance on centralized mechanisms can compromise the security and integrity of networks and projects, potentially resulting in vulnerabilities that attackers could exploit and impact users.

Currently, only a few Layer2 projects have reached Stage 1 of decentralization, while most rollups are still in the early stages of their development. However, Buterin’s commitment to only mention those that meet his criteria could be a catalyst for teams to prioritize decentralization in their blockchain project roadmaps. 

With his recent post, Buterin has issued a clear call to action for Layer2 projects on Ethereum, demanding that they prioritize decentralization in their developments. This feature is not only a philosophical principle in the world of cryptocurrencies, but is also a practical imperative to ensure the security and resilience of networks and move towards a more robust and secure ecosystem.