As a seasoned crypto investor with over a decade of experience in this volatile yet captivating market, I find Vitalik Buterin’s recent announcement regarding his endorsement strategy for Layer 2 (L2) scaling solutions to be an exciting development.
Vitalik Buterin, a co-creator of Ethereum, has unveiled a change in his advocacy approach regarding Layer 2 (L2) scaling technologies.
Starting from the year 2025, he will exclusively endorse L2 projects that have advanced to at least Phase 1 of their development. There might be a brief leeway for innovative and fresh projects during this period.
Buterin Shifts Focus to Layer 2 Projects
He indicated in a post that he considers this matter significantly important. From the upcoming year, he intends to solely highlight L2s (Level 2 projects) that have reached stage 1+, with perhaps a brief exception for fresh and genuinely intriguing initiatives. Furthermore, he made it clear that his personal connections or financial investments will not sway his choice to back a project.
As an analyst, I’d rephrase this as follows: In my analysis, the post lays out the administrative prerequisites for Stage 1, specifying that significant decisions, including overriding proof systems, require a 75% accord from the governing council. Moreover, at least one-fourth of this council should be unrelated to the primary development team. This step is implemented to boost decentralization and minimize the risk of governance malfunctions.
He added that “the era of rollups being glorified multisigs is coming to an end. The era of cryptographic trust is upon us.”
Last October, Vitalik unveiled a strategy for Ethereum focused on rollups, indicating that the platform’s scalability would primarily come from Layer 2 technologies instead of enhancements made directly to the underlying Layer 1 (Layer 1 basis).
As a crypto investor, I’m firmly convinced that leveraging L2 rollups could significantly boost Ethereum’s scalability and operational efficiency, offering a more promising alternative compared to relying solely on L1 chain upgrades.
L2 vs. L1 Debate
These comments come amid ongoing debates within the industry about whether L2 solutions compete with L1 networks like Ethereum. Max Resnick, an engineer with the Special Mechanisms Group, believes that L2s compete for users.
Contrarily, Steven Goldfeder, a co-founder of Offchain Labs, advocates for a collaborative approach between L2s (Layer 2 solutions) and the main L1 (Ethereum’s main network), believing they can enhance scalability collectively. In his opinion, if Ethereum realizes its full potential, there will be ample demand to fully utilize the L1, as well as multiple L2s/L3s.
On the 9th of September, according to Spot On Chain, a multi-sig wallet associated with Vitalik Buterin sold off 760 Ethereum, equating to approximately $1.835 million. This sale was preceded by earlier transactions totaling 3,800 ETH that were transferred in August. As a researcher, I am keeping close tabs on these developments within the Ethereum ecosystem.
Regarding rumors concerning a potential sale, Viatlik has made it clear that it stemmed from his investment in a biodefense organization, which was initiated due to an automatically triggered Cowswap Time-Weighted Average Price (TWAP) order established in late August. He further stated, “That’s the final one.
Apart from his recent disclosure, it’s worth mentioning that he hasn’t used ETH proceeds for personal gain since 2018. Instead, the earnings from his ETH sales are usually channeled towards charities, non-profit organizations, and various other projects.
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2024-09-12 21:30