Ethereum’s Layer 2 networks are stepping up to make the blockchain more secure, connected, and decentralized. Big names like Arbitrum, Optimism, and Base are prioritizing Ethereum’s future, even if it means sacrificing significant revenue from their centralized operations.
These Layer 2s are adopting “based” and “native” rollups—innovations designed to unify Ethereum’s base layer and improve security. Jesse Pollak, head of Base, recently described based rollups as a “flexible and powerful tool” that will better connect Layer 2 networks with Ethereum and enhance the guarantees they provide.
What Are Based and Native Rollups?
Proposed by Ethereum core developer Justin Drake in 2023, based rollups shift transaction sequencing from centralized operators to Ethereum validators, improving decentralization and reducing fragmentation. Native rollups, on the other hand, optimize transaction execution directly on Ethereum’s base layer, making the network more composable and efficient.
Adopting these technologies requires a trade-off. For instance, Arbitrum has generated $210 million, and Base $96.2 million, through centralized sequencers—systems that prioritize transaction order—but this revenue could shrink significantly. Despite this, leaders in the ecosystem are committed to the long-term benefits of a unified Ethereum network.
A Push for Collaboration
Ben Jones from the Optimism Foundation emphasized the importance of collaboration between Ethereum’s base layer and Layer 2s, saying, “It’s war time.” Similarly, Taiko CEO Daniel Wang expressed his firm’s readiness to adopt the FABRIC infrastructure, which supports based rollups, to solve Ethereum’s interoperability issues.
Taiko has already taken the lead as the first Layer 2 to implement based rollups, a move that Ethereum developer Justin Drake acknowledged earlier.
What’s the Trade-Off?
While based rollups increase decentralization and security, they also slow down transaction confirmation times—moving from one second on Layer 2s to about 12 seconds on Ethereum’s base layer. This could be a small price to pay for a more unified and robust blockchain ecosystem.
A Win for Ethereum
These changes could shift some revenue back to Ethereum’s base layer and potentially boost Ether’s value. By enhancing interoperability, security, and composability, based and native rollups are paving the way for a more connected and efficient Ethereum.
The collective effort by Layer 2 leaders demonstrates a clear vision: a future where Ethereum is not only decentralized but also better equipped to handle the demands of a growing blockchain world.
