Buterin’s Insights on Ethereum Layer 2 Scaling Challenges

Vitalik Buterin, a renowned co-founder of the second-largest cryptocurrency project, Ethereum, has sparked debate about the Ethereum proof-of-stake network’s difficulties.

It included centralized staking and transaction processing efficiency, in addition to Layer 2 scaling issues.

During his presentation at the ongoing Ethereum Hong Kong Hackathon, Buterin made the move. Colin Wu, a prominent Chinese journalist, recently tweeted about the development, including screenshots of Buterin’s presentation slides.

In addition, Wu noted that the co-founder of Ethereum proposed four issues that frequently plague Layer 2 blockchain scaling solutions.

Proof system security and decentralization, sequencing decentralization, cross-L2 wallets, and data availability space were the four scaling challenges of Layer 2 that Buterin highlighted, according to the shared screenshot.

Notably, zero-knowledge (ZK) and fraud proofs are proof systems employed by layer two scaling solutions to validate transactions without processing them on the main Ethereum chain.

Notably, there are arguments that some ZK proofs are centralized due to their reliance on specific hardware.

Sequencing, on the other hand, refers to the ordering of transactions before their inclusion in a block. In Ethereum Layer 1, miners are responsible for sequencing.

Nonetheless, some layer-centralized entities may operate two sequencers. In addition, Cross-L2 Wallets enable users to interact with multiple Layer 2 solutions without switching wallets.

Regarding data availability space, this refers to the difficulty of storing a complete copy of the blockchain’s data to validate transactions.

Vitalik Buterin identified these four issues as some of the most significant obstacles that must be overcome for Ethereum to achieve scalability.

In his concluding comment, the co-founder of ETH recommends maintaining three balances.

One of Buterin’s arguments was that “maintaining the base layer’s robustness while expanding a few of its capabilities cautiously is essential.”