Unifying Ethereum

Some of Ethereum's foremost thinkers tackled Ethereum's evolving identity and the challenges of unifying its fragmented ecosystem during a Devcon panel today in Bangkok.

Vitalik Buterin, Stephen Goldfeder, Ben Jones and Jesse Pollack, discussed the problems faced by Ethereum and its rollup-centric roadmap, fielding questions from Hart Lambur of Uma and Across Protocol.

Lambur highlighted the progress Ethereum has made, enabled by "blobs" that slashed layer-2 costs and increased transactions per second (TPS). Yet, Ethereum's rapid scaling has led to fragmentation, sparking concerns about interoperability and user experience.

Buterin lamented the current need for custom solutions whenever users operate across multiple chains. He likened the ideal Ethereum experience to credit card use in Web2, where everything seamlessly connects behind the scenes.

"If Ethereum cannot meet that level of experience," Buterin warned, "it's going to lose to things that do." Still, he praised the commitment of L2 and wallet developers tackling these challenges head on.

The panel discussed a crucial concern: the competition for users and developers among Base, Optimism, and Arbitrum, each vying for liquidity and mind share. Stephen Goldfeder voiced a shared sentiment: Users shouldn't be burdened with infrastructure complexities. He advocated for a "unified Ethereum," envisioning seamless transitions across chains within the ecosystem.

Jones and Pollack each echoed the need for interoperability without restrictive silos, referencing Ethereum's Superchain vision to support user-friendly, cross-chain interactions, suggesting the competition between the major "constellations" of L2 networks is a bit of an illusion.

A key challenge lies in bridging technical and experiential gaps. While Jones argued that EVM-equivalence should theoretically simplify deployment, current reality presents high overhead for developers.

Vitalik stressed the need for easier asset movement across chains and agreed with Pollack that interfaces which "hide addresses," that often confuse users in favor of names, would help. Pollack's focus on simplicity in wallets and interfaces, underscored Base's focus on building "open source on open standards," aimed at empowering users even if centralized entities — like Coinbase — were to fail.

Among the concrete steps the panel explored was the need for on-chain configurations for L2 networks. Parameters such as chain IDs and other identifiers, are foundational for distinguishing each L2 within the Ethereum ecosystem. By establishing standard data points across these networks, wallets, dapps and users can easily recognize and interact with various L2s without needing custom configurations for each one. Expanding these standards could enable deeper interoperability and more seamless interactions between L2s.

One significant benefit of standard on-chain configs is the potential for a universal light client — a tool that verifies and interacts with multiple L2s without requiring chain-specific adaptations. That way a single light client could authenticate transactions and verify data across all participating L2s. This reduces technical friction, creating a more integrated network where assets, data, and applications flow easily across chains.

Standardized protocols like RIP-7755 and ERC standards that don't require protocol changes could facilitate cross-chain operations, including advanced proof structures, Pollack said.

Jones and Buterin emphasized the long-term goal of bringing rollups to Stage 1 or 2, to mitigate inherent governance risks. Fast, secure bridging was recognized as an urgent need, especially with a push for wallet innovations that incorporate chain abstraction.

Ultimately, the panel articulated a shared mission: enhancing user experience without compromising Ethereum's decentralized ethos, aiming for an ecosystem where users, not chains, remain at the center.

— Macauley Peterson (X: @yeluacaM | Farcaster: @Macauley)

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Ethereum TPS over 2024:

Source: L2Beat

Since the implementation of EIP-4844 in March, transaction throughput across Ethereum and its L2 networks has seen a steady climb, showcasing a strong "up and to the right" trajectory.

EIP-4844 introduced data blobs to lower the cost of transactions on L2s, making high-throughput applications more feasible. As Hart Lambur described it at Devcon today, the user experience on each L2 is now like that of Solana.

The Avalanche network stands at a pivotal juncture with the proposal of ACP-125, which aims to reduce base transaction fees from 25 nAVAX to 1 nAVAX on the C-Chain—a 96% reduction. This research leverages recent fee reduction events across major blockchain networks, particularly focusing on Base and Optimism, to predict ACP-125's potential impact on Avalanche.

Access the report

Following a potential Republican victory, analysts at Blockworks Research predict favorable crypto regulatory clarity, benefiting token-related businesses. Increased interest in DAO governance and fee switch proposals suggest growing institutional involvement in DeFi.

Analysts foresee short-term gains for DeFi tokens with regulatory risks and expect improved token-holder value through clearer distinctions between Labs Equity and Protocol Tokens.

Solana is anticipated to gain traction, with projects like JTO, KMNO, and DRIFT as growth candidates. Coinbase is expected to strengthen as the largest US exchange, with Base positioned as a leading EVM-aligned ecosystem alongside Solana.

You'll find the full report by @salveboccaccio, @defi_kay_, @0xcarlosg, @_dshap and @_ryanrconnor at Blockworks Research.

Bitcoin has reached a new all-time high of $93,000, pushing closer to the anticipated $100,000 mark. Ruslan Lienkha of YouHodler suggests this level is achievable, although the timing remains uncertain. He views potential corrections — perhaps driven by equity market weakness — or just sideways consolidation as opportunities. "[A]ny correction and consolidation period is an opportunity for investors to accumulate and build long positions," he told Blockworks.
DePIN protocol peaq network launched its token (PEAQ) yesterday and quickly perked up to an FDV of over $1.4 billion. Tim Kravchunovsky, founder and CEO of the decentralized telecommunications network Chirp, draws a parallel with the Solana-based DePIN GRASS since its launch on Oct. 28: In the DePIN sector, tokens have real utility because they power the decentralized networks and incentivize their use. This differentiates DePIN from some other crypto sectors, like memecoins for example, and ensures that there is intrinsic, tangible value behind the token — not just hype.
In the wake of Devcon debates, Paradigm CTO Georgios Konstantopoulos took to X emphasizing the goal of developing Ethereum with principled, incremental steps. That means improving L2 single-chain UX and performance, enhancing cross-L2 multi-chain functionality, and addressing L1 requirements. While most technical issues can be solved, he notes that political challenges persist, and calls for geographic decentralization and inclusivity beyond data centers for true resilience.