Ethereum developers propose “economic zone” to fix L2 fragmentation

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Developers from Gnosis and Zisk, with support from the Ethereum Foundation, have proposed a up-to-date framework aimed at unifying Ethereum’s fragmented Layer 2 ecosystem by allowing rollups to seamlessly interact with each other and the mainnet in a single transaction.

According to an announcement shared with Cointelegraph, the proposed “Ethereum Economic Zone” (EEZ) would enable shrewd contracts to be executed synchronously across different packages across networks without relying on bridges.

The initiative targets a key compromise in Ethereum’s scaling strategy, in which dozens of Layer 2 networks have improved throughput but separated liquidity, infrastructure and user activity into separate environments.

If implemented, the framework will enable applications to share infrastructure within rollups while simultaneously transitioning to Ethereum, reducing duplication and the need for cross-chain transfers.

The project is being developed jointly with Ethereum researchers and industry participants, with early collaborators including infrastructure providers and DeFi protocols exploring a common standard for interoperable rollups.

Technical details and performance benchmarks will be expected in the coming weeks as the group begins to describe how the framework will be implemented and adopted in the broader Ethereum ecosystem.

The proposal also introduces the “EEZ Alliance,” a group of ecosystem participants seeking to coordinate standards and support their implementation as Ethereum’s scalable architecture evolves.

Gnosis is an early developer of Ethereum infrastructure. Zisk is a zero-knowledge proof project led by Polygon zkEVM creator Jordi Baylina.

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Ethereum’s bulk model sparks debate about fragmentation and scaling

The proposal comes amid ongoing debate in the Ethereum community about the trade-offs in a rollup-centric roadmap. While Layer 2 networks have increased ecosystem capacity, they have also fragmented user flow and activity into separate environments.

Data from L2BEAT can be seen over 20 dynamic Layer 2 networks providing nearly $40 billion in total value, with liquidity distributed across networks such as Arbitrum, Base and Optimism. Instead of consolidating operations, Ethereum’s scaling model has created a landscape of parallel execution environments.

Ethereum Layer 2 Networks: Source: L2BEAT.com

Ethereum co-founder Vitalik Buterin has raised concerns about the design of some Layer 2 networks, pointing to centralized sequencers and trusted bridging mechanisms as potential vulnerabilities.

“The original vision of L2 and their role in Ethereum no longer makes sense and we need a new path,” Buterin said on February 3 postwhich indicates that the ecosystem may need to rethink how rollups contribute to Ethereum’s scaling model.

Buterin’s comments sparked mixed reactions from Layer 2 developers, reflecting division over the future role of rollups.

Karl Floersch, co-founder of Optimism, acknowledged that L2 layers need to evolve beyond plain scaling, citing ongoing technical limitations, while Steven Goldfeder, co-founder of Offchain Labs, creator of Arbitrum, argued that scaling remains a core function as rollups continue to support greater transaction throughput than Ethereum itself.

Ethereum, Vitalik Buterin, Ethereum 2.0, layer 2, decision
Source: Vitalik Buterin

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