Ethereum’s Vitalik Buterin Amps Up Pressure on Layer-2 Networks to Decentralize Further

In 2022, Vitalik Buterin proposed a framework to categorize rollups based on their level of decentralization, emphasizing that many rollups often use “training wheels” and launch prematurely without full decentralization.

Recently, Buterin announced on X that he will change how he discusses layer 2 networks, stating he will no longer mention projects that don’t meet a specific decentralization threshold known as “Stage 1.” This decision is part of a broader commitment to prioritize decentralized solutions.

“Starting next year, I plan to only publicly mention (in blogs, talks, etc.) L2s that are stage 1+,” he stated. “It doesn’t matter if I invested, or if you’re my friend; stage 1 or bust.”

In 2022, Vitalik Buterin introduced a framework to categorize rollups based on their progress toward decentralization, highlighting how many rely on “training wheels” and launch their protocols before achieving full decentralization. He noted that early launches often depend on multisig setups rather than robust fraud proofs or zero-knowledge proofs, which can allow for intervention in case of code issues.

In Buterin’s classification, there are three stages:

• Stage 0 indicates complete reliance on training wheels.
• Stage 1 features limited training wheels and incorporates fraud proofs, which help ensure that no single entity controls the settlement of layer-2 transactions back to the Ethereum blockchain.
• Stage 2 signifies full decentralization.

According to L2Beat, which monitors layer-2 protocols, none of the leading rollups have achieved Stage 2 yet. Currently, only Arbitrum One, OP Mainnet, and zkSync Lite have reached Stage 1.

Buterin remarked on X that “the era of rollups being glorified multisigs is coming to an end. The era of cryptographic trust is upon us.”