|

Vitalik Buterin wants rollups to hit stage one decentralization by year-end

Ethereum co-founder Vitalik Buterin is proposing to raise the bar on what’s considered a rollup in the Ethereum ecosystem — and suggests developers should aim to get their decentralization efforts in order by the end of the year. 

The comments came in his latest blog post on March 28, reflecting on the year ahead following Ethereum’s latest Dencun upgrade, which significantly reduced transaction fees for rollups on layer 2.

Buterin noted that Ethereum was in the “process of a decisive shift” from a “very rapid L1 progress era” to an era where L1 progress will still be very significant.

He also said that Ethereum’s scaling efforts have shifted from a “zero-to-one” problem to an incremental problem, as further scaling work will focus on increasing blob capacity and improving rollup efficiency, he said.

Chart

Source: Vitalik Buterin

He continued to state that the ecosystem’s standards will need to become stricter, adding:

By the end of the year, I think our standards should increase and we should only treat a project as a rollup if it has actually reached at least stage 1.

Stage 1 is Buterin’s classification of layer-2’s decentralization progress, whereby a network has advanced enough in terms of security and scaling but is not yet fully decentralized (which would be stage 2).

He observed that only five of the layer-2 projects listed on L2beat are at either stage 1 or 2, and only Arbitrum is fully EVM (Ethereum Virtual Machine) compatible.

The next steps on the roadmap include implementing data availability sampling to increase blob capacity to 16MB per slot, optimizing layer 2 solutions through techniques like data compression, optimistic execution, and improved security.

Chart

L2 data compression. Source: Vitalik Buterin

“After this, we can cautiously move toward stage 2: a world where rollups truly are backed by code, and a security council can only intervene if the code “provably disagrees with itself,” he added.

Related: Vitalik Buterin is cooking up a new way to decentralize Ethereum staking

Buterin said that further changes such as Verkle trees, single-slot finality, and account abstraction are still significant, “but they are not drastic to the same extent that proof of stake and sharding are.”

In 2022, Ethereum was like a plane replacing its engines mid-flight. In 2023, it was replacing its wings.

Ethereum is currently at “The Surge” phase of its upgrade roadmap with upgrades related to scalability by rollups and data sharding. The next phase, “The Scourge,” will have upgrades related to censorship resistance, decentralization, and protocol risks from MEV.

Developers should design applications with a “2020s Ethereum” mindset, embracing layer-2 scaling, privacy, account abstraction, and new forms of community membership proofs, he said before concluding:

Ethereum has upgraded from being ‘just’ a financial ecosystem into a much more thorough independent decentralized tech stack.

Author

Cointelegraph Team

Cointelegraph Team

Cointelegraph

We are privileged enough to work with the best and brightest in Bitcoin.

More from Cointelegraph Team
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).

Sberbank issues Russia's first corporate loan backed by Bitcoin

Russia's largest bank Sberbank launched the country's first Bitcoin-backed corporate loan to miner Intelion Data. The pilot deal uses cryptocurrency as collateral through Sberbank's proprietary Rutoken custody solution.

Bitcoin recovers to $87,000 as retail optimism offsets steady ETF outflows

Bitcoin (BTC) trades above $88,000 at press time on Tuesday, following a rejection at $90,000 the previous day. Institutional support remains mixed amid steady outflow from US spot BTC Exchange Traded Funds (ETFs) and Strategy Inc.’s acquisition of 1,229 BTC last week.

Traders split over whether lighter’s LIT clears $3 billion FDV after launch

Lighter’s LIT token has not yet begun open trading, but the market has already drawn a sharp line around its valuation after Tuesday's airdrop.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.