Vitalik Buterin, the co-founder of Ethereum (ETH), has sparked a debate regarding the classification of various layer 2 scaling solutions within the Ethereum ecosystem.
Buterin has asserted that Ethereum’s validiums should not be considered genuine rollup solutions. This statement was made in response to a post by Daniel Wang, the founder of Taiko, an Ethereum rollup solution, who argued that if an Ethereum rollup relies on an external data chain, like Celestia’s modular blockchain, it should be categorized as a validium.
Buterin concurred with Wang’s perspective, stating:
“This is correct. The core of being a rollup is the unconditional security guarantee: you can get your assets out even if everyone else colludes against you.”
He underscored that if data availability depends on an external system, it compromises the security guarantee that is fundamental to rollup solutions, making them distinct from validiums. This discussion highlights the ongoing efforts within the Ethereum community to clarify the terminology and characteristics of various scaling solutions.
What is Validium?
Validium is a scaling solution designed for Ethereum, leveraging zero-knowledge proofs to facilitate off-chain transactions while still relying on the Ethereum mainnet for security and verification.
In contrast to ZK-rollups, which bundle transactions on a layer 2 network and validate them on a layer 1 platform like Ethereum, validium networks differ in that they do not directly publish transaction data to the layer 1 chain. Instead, they submit cryptographic proofs of transaction validity, aiming to achieve enhanced scalability by avoiding the necessity to store complete transaction data on-chain.
However, validiums encounter challenges related to data availability, as they depend on operators to honestly publish these proofs.
Networks like Celestia employ modular blockchains that consist of data availability layers and validation layers, with validiums serving as a means for executing rapid and confidential transactions.
Vitalik Buterin used the decentralized social media platform Warpcast to propose adjustments to terminologies associated with these scaling solutions. He suggested replacing terms such as “security-favoring” and “scale-favoring” with “strong” and “light” to enhance clarity and brevity in discussions surrounding these technologies.
Some Argue Validiums Should Be Considered L2 Networks
Vitalik Buterin’s proposed terminology adjustments received support from some members of the Ethereum community, but not everyone shared the same view.
Ryan Berckmans, a member of the Ethereum community, argued that validiums should be categorized as layer 2 networks. He firmly stated, “A layer-2 is a chain that settles on Ethereum. I’ll die on this hill, and I’ll debate anyone who insists the [data availability] has to be on Ethereum for it to be an L2.”
Berckmans believed that the definition of layer 2 should encompass both rollups and validiums, emphasizing their shared characteristics.
However, a layer 2 industry analytics platform called L2Beat disagreed with Berckmans’ perspective, asserting that validiums do not qualify as layer 2 solutions. This difference of opinion highlights the ongoing discussions and debates within the Ethereum community regarding the classification and terminology surrounding various scaling solutions.
According to L2Beat, validiums and optimiums introduce additional trust assumptions by not publishing data on layer 1, implying that there are potential security considerations when it comes to these solutions.
In terms of market share among Ethereum-based layer 2 networks, Arbitrum has established a dominant position, commanding a market share of 49.17%. This significantly surpasses the second-ranking network, Optimism Mainnet, with a market share of 28.85%.
Arbitrum has also witnessed a steady increase in its Total Value Locked (TVL) since at least October of the previous year. The TVL has risen by approximately 50%, going from $1.66 billion in October to the current value of $2.51 billion, according to data from the DeFi tracking site DefiLlama.
The upcoming Ethereum “Dencun” upgrade, which incorporates changes proposed by Ethereum Improvement Proposal (EIP) 4844, is expected to have a positive impact on layer 2 solutions like Arbitrum. This upgrade aims to reduce rollup transaction costs, ultimately benefiting layer 2 networks by lowering gas fees and enhancing overall network capacity. These improvements are anticipated to further support the growth and adoption of layer 2 scaling solutions within the Ethereum ecosystem.
