Ethereum co-founder Vitalik Buterin outlined a shift in the Layer 2 ecosystem’s purpose as Ethereum’s base layer scales. Buterin stated that L2 networks should now focus on specialized features beyond transaction speed, such as privacy or novel applications. A new hybrid rollup design aims to improve interoperability between Layer 1 and Layer 2.
Ethereum co-founder Vitalik Buterin announced a major update to the Layer 2 ecosystem as Ethereum’s Layer 1 scales faster than expected. This change responds to slow L2 progress toward maturity and upcoming increases in L1 gas limits projected for 2026.
These developments reduce the original need for L2s to serve as “branded shards” of Ethereum. “L2 networks should prioritize actual value, not merely increased transaction speed,” Buterin stated.
Buterin mentioned alternatives such as privacy-oriented virtual machines and highly efficient specialized purpose chains. Other possibilities include novel applications such as social media, identity, or AI apps.
L2 networks handling ETH or other Ethereum assets should at least meet stage 1 requirements. They must also integrate properly with the main chain.
This shift means scaling solutions can now concentrate on what differentiates them from L1. For instance, some L2s may remain at level 1 due to regulations, maintaining control over their network.
The new approach allows new ideas to be tested while ensuring users are protected. According to Buterin, native rollup precompiles make it easier to verify ZK-EVM.
Buterin also introduced a new hybrid rollup concept to make components more easily combined. Rollups with sequencing roll transactions off-chain in a fixed order, with very low delays.
Delays are determined by L1 in based rollups, so L1 and L2 liquidity can respond in real time. This structure allows L2s to be innovative while maintaining the core security of the network.
