Ethereum Foundation Shifts Strategy to Integrate Layer 1s as Layer 2 Solutions

The Ethereum Foundation has announced a significant strategic shift, focusing on scaling, interoperability, and security. This new direction was outlined by Tomasz Stanczak, co-executive director of the Ethereum Foundation, who emphasized the integration of all alternative Layer 1s, including Solana, as Layer 2 (L2) solutions for Ethereum. This move is part of a broader vision to redefine Ethereum's future, aiming for unprecedented scalability, interoperability, and security.

Stanczak's vision represents a departure from the previous "ivory-tower" era, advocating for a more inclusive and integrated approach with the broader blockchain ecosystem. The Ethereum Foundation believes that the L2 ecosystem, powered by rollups and scalable solutions, will be crucial in achieving this vision. The Foundation's new strategy aims to position Ethereum as the backbone of decentralized applications globally.

A key component of the Ethereum Foundation’s reset is its ambitious goal of achieving $1 trillion in on-chain security. This goal can be realized in two ways: either by securely storing $1 trillion in one smart contract or by having one billion users store $1,000 each on-chain. Every development decision within the Ethereum ecosystem will now be directed towards achieving this security milestone. This focus on security is not just about Ethereum’s network but also about ensuring the safety and reliability of the entire decentralized finance (DeFi) ecosystem. With Ethereum’s move toward scaling and L2 technologies, this goal seems more attainable than ever before, as it can accommodate far more assets and users while maintaining its robust security architecture.

In Ethereum’s new vision, Layer 2 solutions are not merely "freeloaders" using Ethereum’s security for their operations. Stanczak emphasized that Layer 2s are a critical part of Ethereum’s moat—an essential protective feature that will make Ethereum both scalable and secure. The Foundation will begin by celebrating rollups—Ethereum’s most prominent Layer 2 solution—before working on fee-sharing structures down the line. Scaling the network is the immediate priority, and once Ethereum achieves its desired throughput and scalability, the foundation will shift its focus to the long-term value accrual of ETH. This prioritization of scalability and security underscores Ethereum’s commitment to becoming the backbone of decentralized applications across the globe.