Rethinking Ethereum Layer 2s: So, Vitalik Just Killed Generic L2s?

For years, L2s were seen as Ethereum’s lifeline, designed to scale the network and alleviate congestion on the main chain (Ethereum Layer 1, or L1). 

However, with Ethereum L1 itself undergoing significant upgrades, including increased gas limits and reduced fees, the need for traditional L2s is now being questioned. 

Vitalik’s declaration that “Layer 2 as branded shards is no longer valid” is shaking up the ecosystem and pushing the boundaries of what scaling really means for Ethereum.

Key Takeaways:

• Ethereum Layer 1 is scaling, reducing the need for generic L2s.

• Vitalik’s new vision calls for L2s to specialize rather than simply extending Ethereum.

• The future of Ethereum scaling may be centered around L1 and innovative, specialized L2 solutions.

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Ethereum L1 Scaling: The Evolution of the Gas Limit

For years, Ethereum’s L1 faced scalability issues, primarily due to high transaction fees and congestion. This is what led to the rise of L2s, solutions built on top of Ethereum to help scale the network by offloading transactions from the main chain. 

Initially, the vision for Ethereum scaling was clear: L2s would act as “branded shards,” each contributing additional block space while retaining Ethereum’s security.

But now, with Ethereum’s L1 gas limits set to increase significantly in 2026, the landscape is shifting. The Ethereum community has already seen substantial improvements, including low fees and a much stronger infrastructure. 

With these upgrades, Ethereum L1 is proving that it can scale efficiently on its own, reducing the reliance on L2s.

Read also: How ERC-8004 and x402 Power AI Agents: Onchain Identity, Reputation, and Auto Stablecoin Payments

The End of “Generic” Layer 2s

Vitalik Buterin’s recent comments make it clear that the traditional vision of L2s no longer aligns with Ethereum’s current path. Specifically, he points out that L2s have failed to progress as quickly or smoothly as anticipated, particularly in areas like interoperability and security. 

Many L2 solutions were designed to function as “branded shards”, essentially, L2 chains that extend Ethereum’s scalability. But as Ethereum L1 scales, this vision becomes increasingly irrelevant.

For Ethereum’s L2s to remain relevant, they must evolve beyond their original purpose. Vitalik suggests that the future of L2s lies in specialization. 

Rather than being seen as general solutions to scale Ethereum, L2s should offer unique features and capabilities that go beyond just providing more block space. 

For example, L2s could focus on privacy, high-frequency trading, or specific DeFi applications. In essence, L2s must carve out a niche that Ethereum L1 cannot provide, or risk becoming obsolete.

Read also: The DAO Is Back: Griff Green Activates 75,000+ ETH to Fund Ethereum Security in 2026

L2s as a Full Spectrum: Moving Beyond Scaling

So, what’s next for Ethereum L2s? The future likely lies in a more diverse set of solutions, each serving different needs. 

While some L2s might still focus on scaling and transaction throughput, others may explore entirely new use cases like social platforms, identity systems, or AI applications. 

The key here is that Ethereum no longer needs L2s to simply provide more block space or reduce fees. Instead, it needs L2s that can add unique value to the ecosystem.

Vitalik’s new approach also highlights the importance of trustless security. As Ethereum L1 becomes more capable, L2s will need to prove their trustworthiness without relying on centralized systems or multisig bridges. 

This would ensure that L2s maintain Ethereum’s strong security guarantees, while offering greater flexibility in terms of functionality.

Read also: What Is ERC-8004, Which Will Be Launched on the Ethereum Mainnet?

The Role of the Native Rollup Precompile

One way Ethereum is addressing this challenge is through the development of the native rollup precompile. This precompile allows L2s to securely verify transactions using ZK-EVM proofs, ensuring that their operations are trustlessly validated by Ethereum L1. 

This development is significant because it enhances the security and interoperability of L2s, making it easier for them to integrate with Ethereum while still offering specialized features.

The rollup precompile is part of Ethereum’s broader scaling roadmap, which includes plans for increased gas limits, improved parallel execution, and other innovations. 

These advancements will further reduce the need for generic L2s and shift the focus to more specialized solutions that complement Ethereum’s scaling capabilities.

Will L2s Still Have a Role After 2026?

While Vitalik’s comments may signal the end of the “generic” L2 era, L2s will still play a role in the Ethereum ecosystem after 2026. 

However, their role will be different. Instead of being a catch-all solution for scaling, L2s will need to focus on providing unique capabilities that Ethereum L1 cannot offer. 

For instance, high-frequency trading environments, gaming platforms, or privacy-focused applications may become key areas for L2s to specialize in.

Ethereum’s future is likely to revolve around a combination of L1 scaling, specialized L2s, and enhanced interoperability between them. This will allow for more diverse use cases and a stronger, more resilient Ethereum ecosystem.

FAQ

What does Vitalik mean by the “end of generic L2s”?

Vitalik argues that as Ethereum L1 scales, the need for L2s to provide basic scaling through additional block space becomes obsolete. Instead, L2s should specialize in offering unique features that Ethereum L1 cannot provide.

How will Ethereum L1 scale in 2026?

Ethereum L1 is expected to see a significant increase in gas limits, which will lower transaction fees and increase throughput, making L2s less necessary for basic scaling tasks.

What is the native rollup precompile?

The native rollup precompile is a feature that allows L2s to securely verify transactions using ZK-EVM proofs, ensuring that they remain trustlessly validated by Ethereum L1.

How can L2s remain relevant after 2026?

L2s will need to focus on specialized use cases, such as privacy, high-frequency trading, or gaming, rather than simply acting as generic scaling solutions.

Does Ethereum still need L2s?

Yes, but the role of L2s will evolve. They will need to specialize in areas that Ethereum L1 cannot cover, rather than simply providing additional block space.

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