Ethereum News Today: Ethereum's L2s Push Privacy, Interoperability—As Outages Expose Reliability Gaps

Layer 2 (L2) developments on the Ethereum network continue to evolve rapidly, with privacy and interoperability emerging as key priorities. A notable development is the inclusion of Silent Data, a privacy-focused L2 solution, into the Superchain—a growing ecosystem of over 30 Ethereum L2s. Built on the OP Stack, Silent Data is the first L2 to integrate a privacy wrapper, enabling sensitive operations to be executed on-chain while preserving transparency and composability. The platform is already being tested by companies such as Tokeny, Archax, Shell, and DHL Health Logistics subsidiary CRYOPDP, indicating its potential for enterprise-level applications in real-world assets, energy trading, and healthcare logistics [1].

Privacy remains a focal point for Ethereum developers as they seek to balance scalability with data protection. Silent Data leverages what it calls "programmable privacy," allowing businesses to process transactions without exposing sensitive information. This aligns with broader industry trends toward enterprise-ready blockchain solutions that meet regulatory and security expectations [1]. The project’s adoption by other Superchain L2s could catalyze a shift toward more private and scalable blockchain infrastructure.

Meanwhile, concerns about reliability persist within the Ethereum L2 space. Starknet, one of the largest L2s by total value locked (TVL), recently experienced a second major outage in two months. The network’s sequencer—responsible for ordering transactions—failed to recognize Cairo0 code for nearly three hours, causing block production to halt and requiring users to resubmit transactions. This event raised investor concerns over the reliability of Ethereum’s L2 networks, particularly as Starknet holds $548 million in TVL [2]. The network has since been restored to full functionality, with the team acknowledging the need for a long-term solution to prevent future disruptions [2].

Interoperability is also being prioritized to enhance the Ethereum ecosystem. The Ethereum Foundation (EF) has announced the Ethereum Interoperability Layer (EIL), a trustless cross-L2 interop layer designed to streamline transactions between L2s. The initiative aims to reduce wait times associated with withdrawals between L2s and Ethereum mainnet, which currently face a 3.5-day challenge period. By potentially integrating zero-knowledge (ZK) proofs with other verification methods, the EF hopes to make cross-chain interactions faster while maintaining censorship resistance and security [3].

These developments underscore a broader effort to position Ethereum as a unified yet flexible blockchain infrastructure. As L2s evolve in terms of privacy, scalability, and interoperability, they are expected to play a critical role in supporting mainstream adoption. The integration of privacy-focused solutions and more reliable infrastructure will likely determine the future success of Ethereum’s ecosystem. For now, the combination of innovation and challenges highlights the dynamic nature of the space as it moves toward a more cohesive and robust decentralized framework.

Source:

[1] Silent Data Becomes First Privacy-Focused Layer 2 to Join Ethereum’s Superchain (https://www.coindesk.com/tech/2025/09/02/silent-data-becomes-first-privacy-focused-layer-2-to-join-ethereum-s-superchain)

[2] Ethereum L2 Starknet Suffers 2nd Mainnet Outage in 2 Months (https://cointelegraph.com/news/starknet-outage-ethereum-l2-reliability-concerns)

[3] EF Outlines L2 Interop Layer to Make Ethereum 'Feel Like One Chain' (https://thedefiant.io/news/blockchains/ethereum-foundation-plans-interop-layer-for-layer-2s)