Ethereum scaling solutions Optimism (OP) and Arbitrum (ARB) are leaders in the digital asset space and are the only full Ethereum Virtual Machine rollups to reach “Phase 1” of decentralization. The phases were noted by Ethereum co-creator Vitalik Buterin, who believes all developers should aim for greater decentralization by the end of the year.
On the other hand, ZK-EVM combinations such as Starknet have not yet reached the first stage of decentralization. Ethereum co-founder Vitalik Buterin said on X that he hopes a ZK-EVM rollup will reach the same level of success as Arbitrum and Optimism.
@Arbitrum and @Optimism continue to earn praise for being the first full EVM rollups to reach Phase 1. I look forward to seeing the first ZK-EVM rollup coming to them soon! pic.twitter.com/yyiWh6RKNp
— vitalik.eth (@VitalikButerin) August 6, 2024
In a blog post published shortly after the Dencun upgrade, which significantly reduced costs for Layer 2 rollups, the Ethereum co-founder argued that Ethereum must maintain strict standards to ensure protocols continue to develop sustainably. He added:
“I think our standards should be increased by the end of the year and we should not treat a project as a merger until it has actually reached at least Phase 1.”
According to Buterin, a Layer 2 network in Phase 1 is where a Layer 2 prioritizes efficient security and scaling features but lacks decentralization; full decentralization is achieved in phase 2.
According to L2Beat, Arbitrum’s Total Value Locked (TVL) has fallen 17% in the last 24 hours and currently stands at $14.33 billion. On the other hand, Optimism’s TVL is $5.36 billion, down 16.38%. The protocols’ native tokens, OP and ARB, are up 12.47% and 5.95% respectively, trading at $1.27 and $0.5063 respectively.
The crypto market crash last weekend significantly impacted OP, ARB, in addition to leading altcoins and cryptocurrencies including Bitcoin and Ether. However, according to CoinMarketCap, the market is close to the $2 trillion level, up 3.87% in the last 24 hours.
Disclaimer: The information in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses arising from the use of said content, products or services. Readers are advised to exercise caution before taking any action regarding the company.
