The Ethereum network, a decentralized Layer 1 blockchain that executes smart contracts, is analogous to the open source Linux operating system, in accordance with Ethereum co-founder Vitalik Buterin.
Both Linux and Ethereum are open source and have customized implementations. Linux achieves this through developers creating custom modifications to the software, while Ethereum achieves this through its Layer 2 (L2) scaling networks, Buterin said.
Linux has provided value to “billions” of people, firms and state governments “without compromising its open source ethos or decentralization,” Buterin said, adding:
“We must make sure that Ethereum L1 acts as a financial and ultimately identity, social and governance home for people and organizations that desire greater levels of autonomy, allowing them access to the complete power of the network without depending on intermediaries.” Source: Vitalik Buterin
The analogy underscores the Ethereum Foundation's long-term goals of creating Ethereum an operating system for the Internet, enabling distributed computation, the transfer of value and risk, and the achievement of consensus on the Internet.
Ethereum has layer 2s to suit every taste, but the thrill stays
According to L2Beat, on the time of writing, there are 127 Layer 2 networks within the Ethereum ecosystem.
Critics of Ethereum's Layer 2 scaling approach say there are too many Layer 2 networks competing with Ethereum and cannibalizing base layer revenues that plummeted after the Dencun upgrade in March 2024.
Ethereum Layer 1 Revenue. Source: Token Terminal
Proponents of Ethereum's scaling approach say the varied ecosystem of Layer 2 networks offers Ethereum users freedom of alternative and a greater user experience.
The modular scaling strategy potentially allows Ethereum to construct many high-throughput chains on top of the bottom layer, Anurag Arjun, co-founder of Ethereum L2 Polygon, told Cointelegraph.
“The underrated fantastic thing about this rollup-centric roadmap architecture is that it allows multiple teams to experiment with different execution environments and different block times,” said Arjun.
However, a flood of high-throughput chains without true blockchain interoperability will result in greater fragmentation of the ecosystem, trapping user liquidity in isolated pools and giving users a worse experience, Arjun told Cointelegraph.
This interview has been edited and condensed for clarity.
