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Crypto Market Update: Why Vitalik Says Ethereum’s Original Layer-2 Vision No Longer Works

Ethereum L1 Scaling Forces a Rethink of Layer-2 Roles

Written By : Yusuf Islam
Reviewed By : Sanchari Bhaduri

Ethereum’s original layer-2 vision no longer fits current network realities, as the base layer now scales directly through protocol upgrades. This is what Vitalik Buterin feels looking at the current market scenario. On Tuesday, in an X post, he pointed to slow L2 decentralization and rapid L1 improvements as key drivers behind the reassessment. 

Buterin cited two developments: delayed progress toward stage-2 rollups and sharply lower fees on Ethereum, alongside projected gas-limit increases in 2026. He noted earlier plans treating L2s as “branded shards” were meant to extend Ethereum’s trusted block space. 

That model assumed L2s would inherit Ethereum’s guarantees around validity, censorship resistance, and finality. According to Buterin, those assumptions now conflict with current technical and governance realities.

He added that some L2s may never move beyond stage 1. In some cases, teams prefer retaining control due to regulatory or customer requirements. Such designs, he said, do not align with the original rollup-centric definition of scaling Ethereum.

L1 Scaling Reduces Need for L2s as Branded Shards

Buterin recapped the original scaling goal as creating block space fully backed by Ethereum’s security. Systems connected through multisig bridges fail that definition and operate as separate chains rather than Ethereum extensions, he explained.

Buterin also noted that this framing no longer applies; Ethereum’s base layer already scales, with low fees and planned gas-limit growth. As a result, L1 no longer needs L2s to function as substitute shards.

At the same time, L2s often cannot meet shard-level requirements. Some explicitly reject full decentralization to preserve operational control. Buterin said this approach may serve users, yet it does not constitute Ethereum scaling.

L2s Urged to Find New Value Beyond Scaling

Buterin proposed reframing L2s as a spectrum of systems with varying connections to Ethereum. These include chains fully secured by Ethereum and others with looser trust models. Users, he said, should choose based on the guarantees they need.

He outlined several alternative value propositions for L2s. Examples include privacy-focused virtual machines, application-specific efficiency, and extreme throughput beyond L1 capacity. Other options involve non-financial use cases like social platforms, identity systems, or AI coordination.

He also listed ultra-low latency sequencing, built-in oracles, and dispute resolution as possible differentiators. For ETH-based assets, he feels that stage-1 security is still a minimum requirement. Without it, projects should describe themselves as independent L1s.

Read More: Vitalik Buterin Says 2026 Will Restore ETH’s Trustless Foundations

Native Rollup Precompile Gains Support

From Ethereum’s side, Buterin expressed growing support for a native rollup precompile. This feature would verify ZK-EVM proofs directly within Ethereum. He said it would upgrade alongside Ethereum and receive fixes through hard forks if needed.

According to Buterin, the precompile would remove reliance on security councils. It would allow trustless EVM verification as a built-in Ethereum function. L2s could then focus on proving non-EVM components separately.

He said this design could enable strong interoperability and synchronous composability. Research proposals already explore real-time proving and preconfirmations. From there, each L2 would choose its own architecture while adding distinct functionality.

Buterin acknowledged that permissionless development allows insecure designs, adding that teams must clearly state user guarantees. Ethereum’s responsibility, according to his take, lies in building the strongest possible base layer.

Conclusion: 

Vitalik Buterin says Ethereum no longer relies on Layer 2 networks for scaling as L1 capacity expands with lower fees and higher gas limits. He urges L2s to shift toward specialized functions, stronger interoperability, and clear security guarantees, while Ethereum focuses on strengthening its base layer.

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