Ethereum Foundation's New Gamble: Transitioning All Layer 1s to L2 Solutions, Pursuing $1 Trillion in On-Chain Security
Ethereum Foundation's "Reset" Strategy: Competing Layer 1 Blockchains and the Evolution of Ethereum's Layer 2 Solutions
In a revealing chat, Tomasz Stanczak, co-leader of the Ethereum Foundation, spilled the beans on a daring new plan for Ethereum and its universe. According to Stanczak, every rival Layer 1, including Solana, should switch to Ethereum Layer 2 (L2) solutions. This statement is part of the Ethereum Foundation's grand scheme, targeted at redefining Ethereum's destiny, bedazzling scalability, interoperability, and security at never-seen-before levels.
The Ethereum Foundation's pivot marks a move away from the old "ivory-tower" approach, with Stanczak stressing that the Foundation's new game plan will be far more inclusive and in sync with the broader blockchain world. Stanczak is confident that Ethereum's L2 ecosystem, propelled by rollups and scalable solutions, will play a pivotal role in realizing this vision.
The Great Security Challenge: Aiming for $1 Trillion
At the heart of Ethereum Foundation's revolution is its ambition to attain USD $1 trillion in security. As per Stanczak, the goal is to either have a single smart contract securely store $1 trillion or have 1 billion users store $1,000 each on-chain. Every move within the Ethereum ecosystem will now be primed towards conquering this gargantuan security objective.
This security crusade isn't solely about safeguarding Ethereum's network; it's about ensuring the safety and dependability of the entire Decentralized Finance (DeFi) domain. With Ethereum's move towards scaling and L2 technologies, this aim appears more achievable than ever, as it can accommodate way more assets and users while maintaining its solid security infrastructure.
Layer 2s: Not Free Riders, but Pivotal Actors
In Ethereum's new scheme, Layer 2 solutions (L2s) aren't simply free-riders consuming Ethereum's security for their operations, as some may think. Stanczak insists that L2s are a vital part of Ethereum's moat-a crucial feature that will make Ethereum both scalable and secure.
The Ethereum Foundation will kick things off by celebrating rollups-Ethereum's foremost Layer 2 solution-before delving into fee-sharing structures later. Scaling the network is priority number one, and once Ethereum reaches its desired throughput and scalability, the foundation will shift its attention to the long-term value generation of ETH.
This prioritization of scalability and security points towards Ethereum's determination to become the bedrock of decentralized apps throughout the planet.
Enrichment Insights:
- Notable Shifts: The Ethereum Foundation has recently started focusing on improving Layer 1 scalability, moving away from a strategy centered on Layer 2 solutions[1][2].
- Role of Layer 2s: Layer-2 solutions assist Layer-1 blockchains like Ethereum by processing transactions off-chain, thereby reducing congestion and boosting throughput[5].
- Challenges and Goals: The Ethereum Foundation aims to make Ethereum the backbone of the blockchain ecosystem by addressing technical and organizational challenges. However, specific financial objectives, such as achieving $1 trillion in on-chain security, have yet to be clearly defined[3][4].
The Ethereum Foundation, led by Tomasz Stanczak, is advocating for a shift where all rival Layer 1 blockchains, such as Solana, should transition to Ethereum's Layer 2 (L2) solutions. This shift is part of Ethereum's ambitious plan to redefine its destiny, focusing on unprecedented scalability, interoperability, and security.
In this new scheme, Ethereum plans to secure a massive $1 trillion, either by having a single smart contract secure this amount or by having 1 billion users store $1,000 each on-chain. This security target is not just for Ethereum, but for the entire Decentralized Finance (DeFi) domain.
Contrary to popular belief, Layer 2 solutions on Ethereum are not just free-riders consuming Ethereum's security for their operations. Instead, they are a crucial part of Ethereum's moat, which will make Ethereum both scalable and secure.
The Ethereum Foundation is initially focusing on celebrating and improving rollups, Ethereum's foremost Layer 2 solution, and later moving on to fee-sharing structures. This prioritization of scalability and security positions Ethereum as a strong contender to become the backbone of decentralized apps globally.
