Vitalik Buterin, the co-founder of Ethereum, recently shared his decentralization standards for Layer 2 networks, revealing that most blockchains are still at stage 0 of their development. This assessment highlights the challenges facing many projects in their pursuit of genuine decentralization.
The decentralization standards of Buterin
In a series of social media posts, Buterin clarified his vision of the steps necessary for a Layer 2 network to achieve a satisfactory level of decentralization. According to his three-step plan, stage 0 is characterized by an excessive dependence on operators, where transactions are managed with little user intervention. This model, described as “training wheels,” does not yet allow users to fully benefit from the advantages of a decentralized blockchain. Buterin pointed out that, so far, few networks have managed to progress beyond this initial stage. Currently, only four Ethereum networks, including Arbitrum One and Optimism mainnet, have reached stage 1, which involves active fraud and validity proof mechanisms.
The challenges of Layer 2 networks
The stagnation at this early stage raises crucial questions about the future of Layer 2 networks and their ability to compete with existing solutions. Dependence on centralized structures can limit user trust and hinder adoption. Projects that fail to evolve towards greater decentralization risk not only losing the interest of investors but also compromising the security and integrity of the network. Buterin also warned about the dangers of excessive centralization in the cryptocurrency sector. Networks that do not adhere to these standards could be vulnerable to attacks or manipulations, which could harm the reputation of the industry as a whole.
