- Ethereum layer 2 executives discuss the adoption of "based" and "native" rollups to improve the network's security and reduce fragmentation.
- Base rollups would decentralize transaction sequencing by involving Ethereum validators, promoting network unity and enhancing security.
- While based rollups could reduce revenue from centralized sequencers, they may redirect funds back to Ethereum's base layer, potentially boosting Ether's value.
Executives from prominent Ethereum layer 2 networks are exploring solutions to enhance the unity and security of the Ethereum network through the implementation of “based” and “native” rollups.
These rollups aim to address the fragmentation observed in the ecosystem by shifting certain processes back to the Ethereum base layer.
Jesse Pollak, head of Ethereum layer 2 Base, expressed support for based rollups during a Jan. 25 call with Ethereum founders and developers. He described them as “both a flexible and powerful tool” that would connect Base more closely to Ethereum while enhancing the security of the network.
Ben Jones, Director at the Optimism Foundation, echoed Pollak’s sentiments, emphasizing that base rollups could foster better collaboration between Ethereum’s base layer and its layer 2s.
"I want to just reemphasize we are here to support this, it is war time," he said, underscoring the importance of the initiative.
The move towards base rollups comes after Ethereum layer 2 networks like Arbitrum, Optimism, and Base have faced challenges with high fees linked to the use of centralized sequencers—systems that determine the order of transactions. While these sequencers have generated substantial revenue, they have also contributed to a lack of network unification. By returning the block-building process to Ethereum’s base layer, based rollups would decentralize this function, allowing Ethereum validators, rather than centralized sequencers, to carry out the task.
The idea of based rollups, initially proposed by Ethereum developer Justin Drake in March 2023, is seen as a way to increase Ethereum’s decentralization. Meanwhile, native rollups would improve transaction execution on the base layer, making the network more composable and cohesive.
Despite potential benefits, adopting based or native rollups may come at the expense of revenues generated through Maximum Extractable Value (MEV)—additional profits earned by block producers for adjusting the transaction order. For example, Arbitrum and Base have generated millions of dollars in MEV from their centralized sequencers, but based rollups could potentially redirect some of that revenue back to Ethereum’s base layer.
Ethereum layer 2s are also considering the adoption of the “FABRIC” infrastructure, designed to support based rollups and address interoperability challenges within the network.
Taiko’s CEO Daniel Wang highlighted his firm’s readiness to embrace FABRIC, emphasizing the need for collaboration to create a unified solution. Taiko was the first to implement based rollups on Ethereum earlier this year.
Edited by Harshajit Sarmah
