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Executives from leading Ethereum layer 2 solutions have come together to advocate for the implementation of "based" and "native" rollups. This initiative aims to enhance the security and connectivity of the Ethereum network while reducing fragmentation among its various layers. During a recent call on January 25, Jesse Pollak, head of Ethereum layer 2 Base, emphasized the importance of these rollups as flexible tools that can significantly improve the network's security guarantees.
Key Takeaways
- Ethereum layer 2 leaders are prioritizing the adoption of based and native rollups.
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These rollups aim to enhance security and reduce fragmentation in the Ethereum ecosystem.
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Executives are willing to forgo substantial revenue from transaction fees to achieve greater network unity.
The push for based rollups, proposed by Ethereum core developer Justin Drake, seeks to return the block-building process to the base layer. This shift would allow all Ethereum validators to participate in transaction processing, thereby enhancing decentralization. Ben Jones, Director of the Optimism Foundation, echoed this sentiment, stating that based rollups would foster better collaboration between Ethereum's base layer and its layer 2 solutions.
The Financial Trade-Off
While the transition to based rollups could improve the overall health of the Ethereum network, it comes at a cost. Layer 2 networks like Arbitrum and Base have generated significant revenue from centralized sequencers, with Arbitrum earning approximately $210 million and Base around $96.2 million. By adopting based rollups, these networks would sacrifice a portion of this revenue, which is derived from Maximum Extractable Value (MEV) — the profit block producers earn by manipulating transaction order.
The Benefits of Native Rollups
In addition to based rollups, native rollups are also being discussed as a means to enhance transaction execution on the base layer. This would make the Ethereum network more composable, allowing for greater interoperability among various applications and services.
Decentralized Sequencing and Its Implications
One of the significant changes that would come with the adoption of based rollups is the shift to decentralized sequencing. Currently, many Ethereum layer 2 solutions confirm transactions in about one second, but with decentralized sequencing, this could extend to approximately 12 seconds. While this may seem like a drawback, the long-term benefits of improved security and decentralization could outweigh the initial delays.
Ethereum sequencing and preconfirmations call #17. Source: YouTube
The Role of FABRIC
Several Ethereum layer 2 executives are also advocating for the implementation of "FABRIC," an infrastructure designed to support based rollups. Daniel Wang, CEO of Taiko, expressed his firm’s commitment to adopting the FABRIC standard to address Ethereum's interoperability challenges. Taiko was notably the first layer 2 to implement based rollups, showcasing its leadership in this evolving landscape.
Source: Justin Drake
Conclusion
The collective effort by Ethereum developers and layer 2 leaders to focus on based and native rollups marks a significant step toward a more unified and secure Ethereum ecosystem. While the financial implications of this transition are considerable, the potential for enhanced security and reduced fragmentation presents a compelling case for the future of Ethereum. As these initiatives progress, the Ethereum community will be watching closely to see how they impact the network's performance and overall adoption.