Buterin highlighted that the Ethereum base layer (L1) serves as a critical safety net, particularly in the event of failures on Layer-2 solutions. He warned that if a high-profile L2 were to collapse, the current L1 capacity might prove insufficient to handle mass withdrawals. Moreover, interoperability issues—especially for low-volume assets and NFTs that require routing through L1—could drive up transaction costs unless L1 capacity is significantly enhanced.
He estimated that, to efficiently manage large-scale exits and reduce costs, Ethereum’s L1 might need to scale by nearly 5.5x to 9x its current capacity. Additionally, Buterin raised security concerns regarding ERC-20 token issuance on L2s, arguing that keeping token issuance on L1 can prevent potential exploits in less secure environments.
The much-anticipated Pectra upgrade, scheduled for April 8, will increase the target number of "blobs" from three to six per block and introduce a staker-voted mechanism for these adjustments. This upgrade is expected to bolster scalability, maintain low fees, and enhance overall network security, ensuring Ethereum remains competitive in the evolving digital asset landscape.