Ethereum Foundation Redefines L2 Role: Differentiation Over Scaling

Ethereum Foundation's New L2 Philosophy

The Ethereum Foundation (EF) has released a document outlining a revised vision for how the base layer and Layer 2 solutions should relate to each other. The central argument: L2 networks should no longer be viewed primarily as scaling tools. Instead, their core value lies in differentiation — the ability to deliver features that are impossible on L1.

«1/ How L1 and L2s can build the strongest possible Ethereum tldr: we should continue to lean into the unique capabilities of each layer, and make sure all users have a clear path to securely and seamlessly benefit from the core properties of Ethereum» — joshrudolf.eth (@rudolf6_), original post

According to the document, Layer 2 solutions should bring users capabilities that the base layer cannot provide: specialized applications, non-EVM functionality, enhanced privacy guarantees, ultra-low latency, and novel pricing mechanisms.

Why This Matters

Ethereum holds the leading position among programmable blockchains in terms of adoption, developer attention, decentralization, and reliability. The mainnet already has a clear scaling roadmap through ZK technologies. Yet the need for L2 solutions is not disappearing — rather, they are expected to evolve toward building unique services, flexible market strategies, and distinct zones of control.

The Foundation emphasized that a strong L2 network strengthens the broader ecosystem and reinforces Ethereum's gravitational pull. This perspective aligns with Ethereum co-founder Vitalik Buterin's earlier stance, in which he proposed viewing L2s as a spectrum of possibilities rather than a single standard, urging developers to avoid replicating L1 functions.

Varying Degrees of L1 Integration

EF outlined that rollups can establish different levels of relationship with the mainnet depending on their objectives. Projects seeking maximum integration should pursue:

• Synchronous composability and interoperability
• Shared liquidity with the base layer
• Full decentralization (Stage 2)
• Mechanisms such as native rollups

EF's Areas of Focus

The Foundation identified specific areas where it plans to invest resources going forward:

• Scaling L1 and increasing BLOB throughput without compromising decentralization
• Supporting L2 projects that enhance privacy, security, and trust properties
• Improving base-layer liquidity and simplifying L2 access to it
• R&D on native rollups enabling full trustless verification on the mainnet
• Collaboration with L2Beat for monitoring and validating security properties

In return, L2 projects are expected to maintain transparency and verifiability of their security characteristics.

Fragmentation Remains the Biggest Challenge

The document identifies fragmentation as the ecosystem's primary challenge. EF intends to work alongside projects to improve interoperability, addressing the disjointed user experience and development workflows that currently plague the multi-L2 landscape. The authors stated that a clearer understanding of L1-L2 relationships can help resolve the fragmentation of Ethereum's overall narrative.

Notably, since June 2025, the number of L2 networks with TVS exceeding $100,000 has decreased from 108 to 100, even accounting for new protocol launches — an indication that the rollup market is undergoing natural consolidation.