Ethereum Layer-2 Solutions Improve Speed and Cost
Ethereum’s Layer-2 (L2) solutions offer faster transactions and lower fees than Layer-1 (L1) networks. Vivek Raman, CEO of Etherealize, said on X, “L2s are faster, cheaper, more customizable. L1s are encumbered by consensus (if they actually want to be decentralized).”
Vladimir Novakovski, CEO of Lighter, added, “Being an L1 is a bug, not a feature. An L1 is just an Ethereum L2 without any of the security and verifiability parts.” Both agree L2s can scale Ethereum without compromising security.
Ethereum Advances Privacy on Layer-1
The Ethereum Foundation launched the “Privacy Cluster,” a team of 47 experts focused on adding privacy features to Ethereum’s L1 network. These include private payments, confidential transfers via PlasmaFold L2, and methods to verify data without revealing details.
Co-founder Vitalik Buterin emphasized the importance of privacy, stating, “We should have privacy in our digital communications and activities, of a similar type that we had for thousands of years.”
This initiative builds on the Privacy Stewards for Ethereum (PSE) program. Ethereum aims to combine L2 speed with stronger L1 privacy to enhance security and user protection.
Institutional Interest Highlights Ethereum’s Neutrality
Ethereum’s neutral stance attracts Wall Street attention. Fundstrat Chairman BitMNR said, “It’s important for Wall Street to find a public blockchain that’s neutral, and today the biggest one is Ethereum.”
Ethereum’s growth is driven by faster L2 solutions, improved privacy, and trust from major institutions. These factors make the network more efficient and secure for users.
