Ethereum, one of the most widely used blockchain platforms, has faced increasing scrutiny regarding its scalability issues, especially with the rise of Layer-2 solutions. As more users transition to platforms like Arbitrum and Optimism, questions about Ethereum's ability to handle increasing demand have been raised. Recently, Ethereum co-founder Vitalik Buterin

"I don't think Ethereum will last more than ten or fifteen years. Layer-2 will siphon off all the value, and users will move elsewhere, ultimately overshadowed by Bitcoin," Charles Hoskinson said.

Vitalik Buterin's Layer-Zero update

Buterin directly responded to Hoskinson's comments, predicting that Ethereum would collapse within 15 years if it continues to rely heavily on Layer-2 solutions. To address these scalability challenges, Buterin announced an exciting Layer-Zero upgrade. This proposal suggests converting Ethereum from the traditional Ethereum Virtual Machine (EVM) to a more efficient zkVM system, based on RISC-V standards.

The upgrade promises significant improvements, including being up to 832 times less than the current EVM and reducing proof cycles by 95.7%. These advancements are expected to increase throughput by 30 times through GPU acceleration, significantly improving the network's efficiency. Additionally, proof compression could reduce from 346MB to just 1.5MB, creating a much more streamlined system.

The path to Ethereum's long-term growth

However, this Layer-Zero update has the potential to reshape Ethereum's scalability, paving a new path that does not rely on Layer-2 solutions. By improving Ethereum's base layer, Buterin's proposal could reduce transaction fees and enhance Ethereum's competitiveness, especially compared to newer blockchain technologies.

Although still in the proposal stage, this update could significantly improve the long-term viability of Ethereum and lay the groundwork for future growth, addressing both scalability issues and concerns raised by critics like Hoskinson.