The Ethereum network, a decentralized layer 1 blockchain that runs smart contracts, is analogous to the open source Linux operating system, according to Ethereum co-founder Vitalik Buterin.
Linux and Ethereum are open source and have custom implementations. Linux achieves this through developers creating custom software modifications, while Ethereum does this through its layer 2 (L2) scaling networks, Buterin said.
Linux has provided value to “billions” of individuals, businesses and state governments “without compromising” its open source ethos or its decentralization, Buterin said, adding:
“We must ensure that Ethereum L1 serves as the financial and ultimately identity, social and governance home for people and organizations that want a higher level of autonomy, and give them access to the full power of the network without relying on intermediaries.”
The analogy highlights the Ethereum Foundation’s long-term goals of making Ethereum an operating system for the Internet that enables distributed computing, transferring value and risk, and reaching consensus on the Internet.
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Ethereum Has Layer 2 for All Flavors, But Tension Remains
There are 127 Layer 2 networks within the Ethereum ecosystem as of this writing, according to L2Beat.
Critics of Ethereum’s Layer 2 scaling approach say there are too many Layer 2 networks, competing with Ethereum and cannibalizing base layer revenue, which plummeted following the Dencun upgrade in March 2024.
Proponents of Ethereum’s scaling approach say the diverse ecosystem of Layer 2 networks gives Ethereum users options and a better user experience.
The modular scaling strategy potentially allows Ethereum to have many high-performance chains built on top of the base layer, Anurag Arjun, co-founder of Ethereum L2 Polygon, told Cointelegraph.
“The underrated beauty of this rollup-centric roadmap architecture is that it allows multiple teams to experiment with different execution environments and different block times,” Arjun said.
However, a flood of high-performance chains without true blockchain interoperability will lead to further fragmentation of the ecosystem, trapping user liquidity within isolated pools and giving users a worse experience, Arjun told Cointelegraph.
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This interview has been edited and condensed for clarity.
