Current limitations of crypto network scaling
In a recent speech, Vitalik Buterin, the co-founder of Ethereum, stated that the largest cryptocurrency networks, such as Bitcoin and Ethereum, have still failed to successfully scale their blockchains. While many had been counting on layer-2 solutions, such as Lightning Network and Rollups, progress towards further decentralization has been slow and difficult.
According to Buterin, the initial 'roadmap' for scaling cryptocurrency networks, based on layer-2 solutions, no longer makes sense, as Ethereum itself has begun to scale directly at the layer-1 level. This shift in priorities was driven by both technical and regulatory challenges faced by layer-2 solutions.
The future of the Ethereum ecosystem
Buterin emphasized that Ethereum is now focusing on direct layer-1 scaling, including through technologies like sharding and the Merge. This means that crypto network developers will have to rethink their plans to use layer-2 solutions and adapt to the new reality.
The Ethereum ecosystem is moving towards greater centralization in the short term, as layer-1 solutions provide faster and more efficient operation. However, in the long run, Buterin is confident that Ethereum will be able to achieve a high level of decentralization thanks to the further development of layer-2 technologies.