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Ethereum Ecosystem Expansion Strategies by Vitalik Buterin

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by Giorgi Kostiuk

2 months ago


Ethereum co-founder Vitalik Buterin outlined a multi-pronged strategy to scale the Ethereum ecosystem by fostering growth in layer-2 solutions, advancing blob scaling, and reinforcing Ether’s role as the ecosystem’s primary economic driver.

L2 Growth for Scalability

L2 networks operate on top of Ethereum’s main blockchain and have significantly impacted user transaction fees and throughput. Despite their success, Buterin emphasized a need for further adoption and interoperability between L2s, suggesting that applications and wallets must make the ecosystem more unified. He highlighted that L2 networks are no longer the experiments they were in 2019, advocating for standardized crosschain messaging and faster deposit and withdrawal times.

Blob Scaling for Increased Transaction Capacity

As part of his strategy to unify the Ethereum ecosystem, Buterin said the network should focus on achieving a higher number of blobs. Blobs are a tool that help Ethereum process more transactions at a lower cost without sacrificing decentralization or security. With EIP-4844, the network is set to have 3 blobs per slot, with plans to increase this to 6 blobs per slot.

Risks of Decentralization without Utility

Buterin highlighted the need to continue building Ethereum's technical and social properties. He warned that a lack of utility could lead to a community without meaningful alternatives. Conversely, he cautioned against sacrificing Ethereum’s foundational principles for utility, noting the dangers of excessive greed.

Buterin stresses the necessity of a balanced approach to Ethereum development, integrating technical upgrades and strengthening ETH's role within the ecosystem.

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