In a blog post, Vitalik Buterin, the co-founder of Ethereum, emphasized the need for three crucial transitions to ensure the long-term sustainability of the Ethereum blockchain ecosystem. These transitions, which Buterin believes are essential for Ethereum’s growth, include layer-2 scaling, wallet security, and privacy enhancements.
Buterin acknowledged that improving the protocol alone would not be sufficient; rather, fundamental changes in how users interact with Ethereum and its applications are necessary. He highlighted the significance of building cross-chain solutions for layer-2 blockchains, using the example of users struggling with multiple addresses due to the various scaling solutions built on top of Ethereum.
The vision of an L2 scaling world, according to Buterin, means that users will exist across multiple layer-2 chains. For instance, if a user is a member of ExampleDAO on Optimism, they would have an account on Optimism. Similarly, holding a CDP in a stablecoin system on ZkSync would require an account on ZkSync. This transition implies that the era of users having only one Ethereum address will come to an end.
While these transitions are not exclusive to Ethereum and have been explored by other blockchain ecosystems, such as Cosmos, they are critical for Ethereum’s continued success. Cross-chain solutions, enabling communication between different networks, have been extensively studied within the Cosmos ecosystem, where individual layer-1 app chains interoperate through the inter-blockchain communication protocol (IBC).
Dougie DeLuca, an investor at Figment Capital, highlighted the growing similarities between Cosmos’ rollup ecosystems and Ethereum’s needs. DeLuca noted that blockchain design is becoming commoditized, with various networks resembling one another. He emphasized the potential benefits of collaboration between Ethereum and Cosmos, as their combined knowledge could lead to innovative solutions.
In Ethereum, a more native approach to interoperability between layer-2 solutions is being pursued through projects like Connext, which focuses on chain abstraction. Additionally, Ethereum aims to enhance smart contract wallets through account abstraction solutions, enabling users to maintain self-custody over their wallets. Cosmos is currently exploring similar concepts through its Authz project.
Although Ethereum and Cosmos have distinct characteristics, their common objective of achieving interoperability and scalability opens the door for collaboration. DeLuca expressed optimism about the possibility of Ethereum and Cosmos teams working closely together, leveraging their respective expertise to develop robust solutions.
As Ethereum continues to evolve, the integration of layer-2 scaling, improved wallet security, and enhanced privacy measures will be crucial for its long-term sustainability. Collaboration between Ethereum and Cosmos, combining their knowledge and experiences, holds the potential to propel blockchain technology toward a more interconnected and user-centric future.
