L1 Blockchains Will Be Allowed to Join Ethereum's Economic Zone
The Ethereum Economic Zone (EEZ) initiative will be open not just to L2 rollups but also to independent Layer-1 networks. Gnosis co-founder Friederike Ernst detailed the criteria and mechanics behind the liquidity fragmentation solution.
The Ethereum Economic Zone (EEZ) won't be limited to Layer-2 solutions — independent Layer-1 blockchains will also be eligible to participate. Gnosis co-founder Friederike Ernst shared these details in a conversation with Cointelegraph.
Why This Matters
Liquidity fragmentation remains one of the most pressing challenges within the Ethereum ecosystem. Major protocols like Aave and Maker are forced to deploy separate instances across each L2 network, splitting capital into dozens of isolated markets. EEZ aims to solve this by enabling different networks to interact as if they were part of a single unified infrastructure.
According to Ernst, numerous projects operating outside the Ethereum ecosystem have already expressed interest in the initiative. Opening EEZ to external L1 blockchains dramatically expands its potential reach and impact on cross-chain interoperability.
Three Requirements for EEZ Membership
To join the economic zone, a blockchain must meet three technical criteria:
- A clear state transition function — a defined and verifiable mechanism for processing transactions;
- Cryptographic proofs for every block — generating verifiable attestations for transparency;
- Ability to reorganize in sync with Ethereum — the most challenging requirement, according to Ernst, but essential for securing shared transactions.
How the Mechanism Works
Block builders will handle the technical implementation. They will be able to recognize smart contracts from different networks and include them atomically in a single block — either both transactions execute, or neither does. This approach allows users to access Ethereum mainnet applications directly from L2 solutions without fragmenting liquidity across numerous small pools.
Ernst also noted that EEZ participation does not require EVM compatibility. This makes the proposal potentially attractive to private institutional networks that may use their own execution environments.
Voluntary Participation
The Gnosis co-founder emphasized that joining the economic zone is not an irreversible decision. Any blockchain can leave EEZ at any time should its strategy or priorities change. This flexible framework lowers the barrier to entry and lets networks test the benefits of integration without long-term commitments.
The EEZ initiative comes amid broader efforts by the Ethereum Foundation to strengthen the network's scalability and security. In March, the foundation released a roadmap for protecting Ethereum against quantum computing threats, reflecting a comprehensive approach to ecosystem development.
Frequently Asked Questions
What is the Ethereum Economic Zone (EEZ)?
The Ethereum Economic Zone is an initiative designed to combat liquidity fragmentation. It enables different blockchains to interact as if they were part of a single infrastructure, eliminating the need for protocols to deploy separate versions across each network.
What are the requirements to join the Ethereum Economic Zone?
A blockchain must meet three criteria: have a clear state transition function, generate cryptographic proofs for every block, and support the ability to reorganize in sync with Ethereum. The last condition is considered the most challenging.
Can Layer-1 blockchains join the EEZ?
Yes, according to Gnosis co-founder Friederike Ernst, not only L2 solutions but also independent Layer-1 networks will be able to join the Ethereum Economic Zone. Many projects outside the Ethereum ecosystem have already shown interest.
Is EVM compatibility required for EEZ participation?
No, EVM compatibility is not mandatory for joining the economic zone. This makes EEZ attractive even to private institutional networks that use their own execution environments.
Can a blockchain leave the Ethereum Economic Zone?
Yes, participation is entirely voluntary. Any blockchain can exit the EEZ at any time if its strategy or priorities change, lowering the barrier to entry for testing integration benefits.
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