Skip to main content

Market Overview

Ethereum Co-Founder Vitalik Buterin Says Layer-2s Using Validium Are Not Genuine Rollup Solutions

Share:
Ethereum Co-Founder Vitalik Buterin Says Layer-2s Using Validium Are Not Genuine Rollup Solutions

The co-founder of Ethereum (CRYPTO: ETH), Vitalik Buterin, said blockchain's validiums are not genuine rollup solutions.

What Happened: According to Cointelegraph, Buterin, in an X post on January 16, responded to a proposition made by Daniel Wang, the founder of Ethereum rollup solution, Taiko.


Wang suggested that an Ethereum rollup that utilizes another data chain for data availability, such as the modular blockchain Celestia (CRYPTO: TIA), could be classified as a validium. Buterin validated Wang’s viewpoint, noting that validiums do not possess the inherent security assurance of rollups, which enable users to recover their assets regardless of any conspiracy against them.

The Ethereum scaling solution, Validium, uses zero-knowledge proofs to enable off-chain transactions while harnessing Ethereum’s mainnet for security and verification. Unlike ZK-rollups, validium networks do not post transaction data to Ethereum; instead, they post cryptographic proofs of transaction legitimacy. This method aims for greater scalability by eliminating the need for storing comprehensive transaction data on-chain.

See Also: What’s Going On With Nio Stock?

Why It Matters: Despite the support for validiums, some, like Ryan Berckmans, within the Ethereum community, disagree with Buterin’s statements, arguing that validiums are indeed layer 2 networks. Berckmans suggested that the definition of ‘L2’ can be molded as required in this emerging industry, and its most practical definition would include both rollups and validiums.


The discussion comes amid Buterin’s proposal to increase Ethereum’s block gas limit by 33.3%, a move intended to enhance the network’s capacity, on January 12, 2024.

Price Action: At the time of writing, ETH was trading at $2,514 down 1.34% in the last 24 hours, according to Benzinga Pro.

Read Next: Poll Shows Half Of Haley Supporters In Iowa Show Surprising Preference For Joe Biden Over Donald Trump

Photo by Alexey Smyshlyaev on Shutterstock.

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

 

Related Articles ($ETH + $TIA)

View Comments and Join the Discussion!

Posted-In: benzinga neuro Celestia Ethereum validium Vitalik ButerinCryptocurrency News Markets

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com