Vitalik Buterin highlights Layer 2 technology for DeFi growth
Vitalik Buterin, co-founder of Ethereum (CRYPTO:ETH), emphasised the critical role of Layer 2 technology in the future of decentralised finance (DeFi) through his X account.
He highlighted that the significant reduction in costs associated with Layer 2 solutions is a key factor for broader DeFi adoption.
Buterin noted, “Low transaction fees are the cornerstone of the cryptocurrency market’s success,” emphasising that although this goal was initially proposed in 2020, it is becoming a reality with advancements in Layer 2 technology.
Buterin pointed to Taiko, a rollup-based decentralised Layer 2 solution, as a strong example of how reduced fees can be achieved without compromising decentralisation.
He asserted that DeFi can only reach mainstream adoption if transaction fees are kept low, a barrier that the cryptocurrency market has yet to fully overcome.
However, decentralised Layer 2 solutions like Taiko offer promising advancements in tackling high transaction fees, which are seen as a significant obstacle to growth.
Robert Sasu, a core engineer from MultiverseX, responded to Buterin’s remarks by suggesting that while Layer 2 technology has the potential to reduce fees, it often relies on centralised architectures in practice.
He argued that this reliance undermines the core principle of decentralisation that blockchain technology is built upon.
Sasu called for more decentralised solutions to address this issue.
In response, Buterin disagreed, highlighting that Taiko's model has successfully achieved low transaction fees while maintaining decentralisation.
He emphasised that Taiko’s success shows the feasibility and affordability of truly decentralised Layer 2 solutions, setting a strong precedent for future projects.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Hackers are targeting Australia’s largest pension funds
Share link:In this post: Hackers targeted major Australian superannuation funds, stealing $500,000 from a few accounts and exposing personal data. Authorities and financial institutions are responding to the breach, urging members to check accounts and update passwords. Credential stuffing using stolen passwords is suspected in the attacks, prompting warnings to use unique logins and enable multifactor authentication.
Meta to end third-party fact-checking in U.S. on April 7
Share link:In this post: Meta will shut down its U.S. third-party fact-checking program on April 7, 2025, ending partnerships with groups like PolitiFact. It will be replaced by Community Notes, a system that lets users add context to posts without triggering penalties. Zuckerberg criticized the old system as biased and overly censorious, and said the change aims to support free speech. Meta is also relocating its moderation teams to Texas, a move some experts say is politically motivated.

Crypto Today: Altcoins Find New Buyers as Microsoft, Apple and Nvidia Lose $1 Trillion in 3 Days
Cardano Approaching First Death Cross: What’s Next for ADA Price?
Trending news
MoreCrypto prices
More








