# Ethereum Layer-2 Scaling Advances Amidst Centralization and Economic Challenges ∞ Tech

**Published:** 2025-09-16
**Categories:** Tech

---

Ethereum’s Layer-2 ecosystem continues to advance, focusing on increased [transaction throughput](https://incrypthos.com/news/transaction-throughput/) and reduced operational costs through innovations like EIP-4844. This architectural evolution enables a substantial reduction in data posting costs for rollups, thereby lowering end-user transaction fees and expanding the network’s overall capacity. Despite these technical gains, the ecosystem grapples with centralized sequencer risks and a misalignment in value capture for the Ethereum base layer, evidenced by an 88-99% reduction in ETH burn from rollup data posting post-Dencun.

The Ethereum mainnet previously faced significant architectural constraints, leading to high gas fees and limited transaction processing capacity. This environment created substantial engineering challenges for developers aiming to build scalable and cost-effective [decentralized applications](https://incrypthos.com/research/distill-the-papers-core-thesis-into-a-clear-declarative-statement-focus-on-the-new-concept-and-its-significance-8-12-words-maximum-do-not-use-a-period-draft-ethereum-execution-tickets/). The primary technical limitation was the high cost of storing transaction data directly on the Layer-1 blockchain, hindering broad adoption and efficient resource allocation.

The implementation of EIP-4844 (proto-danksharding) fundamentally alters Ethereum’s data availability layer, introducing dedicated “blobs” for rollup data, distinct from traditional calldata. This change drastically reduces the cost for Layer-2 networks to post transaction batches to the mainnet, directly improving their economic viability and throughput. Developers now benefit from a more efficient data market, enabling the creation of applications with significantly lower [operational costs](https://incrypthos.com/tech/ethereum-eip-4844-enhances-l2-scalability-and-reduces-transaction-costs/) and faster confirmation times. The protocol’s mechanics are evolving towards a modular design, where Layer-1 specializes in data availability and security, while Layer-2s handle execution, thereby increasing the network’s aggregate processing power.

- **EIP Number** ∞ [EIP-4844](https://incrypthos.com/news/eip-4844/) (Dencun Upgrade)

- **L2 Transaction Cost Reduction** ∞ 88-99% post-Dencun

- **Base Daily Transactions** ∞ ~11M tx/day

- **Base [Sequencer Revenue](https://incrypthos.com/research/distill-the-papers-core-thesis-into-a-clear-declarative-statement-focus-on-the-new-concept-and-its-significance-8-12-words-maximum-do-not-use-a-period-draft-ethereum-execution-tickets/) (12 months)** ∞ ~$93M

- **Arbitrum Default Block Time** ∞ 250ms (down to 100ms with Timeboost)

The next phase of the Ethereum roadmap involves addressing the [decentralization](https://incrypthos.com/news/decentralization/) of sequencers and enhancing economic alignment between Layer-2s and the Ethereum base layer. Proposed solutions, such as based rollups and shared sequencing markets, aim to route sequencer revenue back to ETH stakers, strengthening the protocol’s economic security. This strategic evolution enables the development of new categories of high-throughput decentralized applications and real-world asset (RWA) tokenization, fostering a more robust and expansive application layer.

**[Ethereum](https://incrypthos.com/news/ethereum/)’s Layer-2 advancements establish a scalable computational foundation, yet achieving true protocol resilience requires immediate decentralization of sequencer infrastructure and refined economic value flows.**

Signal Acquired from ∞ <a href="https://blog.mexc.com/overview-of-ethereum-l2/?utm_source=incrypthos.com&utm_medium=referral&utm_campaign=noo-engine.com" target="_blank" rel="nofollow">mexc.com</a>

## Glossary

<a href="https://incrypthos.com/news/transaction-throughput/" class="glossary-item-box">

## transaction throughput 

Definition ∞ Transaction throughput quantifies the number of transactions a blockchain network can process within a given period, typically measured in transactions per second (TPS). </a><a href="https://incrypthos.com/research/distill-the-papers-core-thesis-into-a-clear-declarative-statement-focus-on-the-new-concept-and-its-significance-8-12-words-maximum-do-not-use-a-period-draft-ethereum-execution-tickets/" class="glossary-item-box">

## decentralized applications 

**: Single sentence, maximum 130 characters, core research breakthrough. </a><a href="https://incrypthos.com/tech/ethereum-eip-4844-enhances-l2-scalability-and-reduces-transaction-costs/" class="glossary-item-box">

## operational costs 

EIP-4844 fundamentally rearchitects data availability, enabling cost-efficient L2 operations and positioning Ethereum as a robust global settlement layer. </a><a href="https://incrypthos.com/news/eip-4844/" class="glossary-item-box">

## eip-4844 

Definition ∞ EIP-4844, also known as "Proto-Danksharding," is a proposed Ethereum Improvement Proposal designed to substantially decrease transaction fees for layer-2 scaling solutions. </a><a href="https://incrypthos.com/research/distill-the-papers-core-thesis-into-a-clear-declarative-statement-focus-on-the-new-concept-and-its-significance-8-12-words-maximum-do-not-use-a-period-draft-ethereum-execution-tickets/" class="glossary-item-box">

## sequencer revenue 

**: Single sentence, maximum 130 characters, core research breakthrough. </a><a href="https://incrypthos.com/news/decentralization/" class="glossary-item-box">

## decentralization 

Definition ∞ Decentralization describes the distribution of power, control, and decision-making away from a central authority to a distributed network of participants. </a><a href="https://incrypthos.com/news/ethereum/" class="glossary-item-box">

## ethereum 

Definition ∞ Ethereum is a decentralized, open-source blockchain system that facilitates the creation and execution of smart contracts and decentralized applications (dApps). </a>

**Tags:** [EIP-4844](https://incrypthos.com/news/eip-4844/), [Transaction Throughput](https://incrypthos.com/news/transaction-throughput/), [Layer-2](https://incrypthos.com/news/layer-2/), [Ecosystem](https://incrypthos.com/news/ecosystem/), [Rollup Technology](https://incrypthos.com/news/rollup-technology/), [Data](https://incrypthos.com/news/data/)	

## Discover More

- 
### [LLMs Automate Smart Contract Formal Verification Property Generation](https://incrypthos.com/research/llms-automate-smart-contract-formal-verification-property-generation/)
![A translucent, frosted polymer casing encases a prominent, circular metallic button, likely a biometric authentication sensor, central to a hardware wallet. A vibrant blue luminescence emanates from within, suggesting an active secure enclave or cryptographic module. This device facilitates robust cold storage for digital assets, safeguarding private keys and enabling secure transaction signing. Its design implies a tamper-proof mechanism for decentralized identity verification or a dedicated Proof-of-Stake validator interface, crucial for DLT integrity.](https://incrypthos.com/wp-content/uploads/2025/09/cryptographic-hardware-security-module-private-key-storage-interface.jpeg)

This research integrates large language models with formal verification to automatically generate precise properties, fundamentally enhancing smart contract security.

- 
### [Ethereum Advances Layer 2 Scaling, Targeting Tenfold Throughput](https://incrypthos.com/tech/ethereum-advances-layer-2-scaling-targeting-tenfold-throughput/)
![A sophisticated, compact hardware wallet, featuring a frosted, translucent blue chassis suggesting advanced cold storage capabilities. A prominent clear blue dome encapsulates a liquid-like substance, symbolizing a secure enclave for cryptographic keys and sensitive seed phrase data. The device's robust design implies immutable ledger protection for digital assets, ensuring non-custodial ownership. Its sleek form factor and subtle metallic accents highlight next-generation blockchain security protocols, vital for decentralized finance DeFi participants. This secure element facilitates multi-factor authentication and private key management, safeguarding against unauthorized transaction signing.](https://incrypthos.com/wp-content/uploads/2025/09/next-gen-cold-storage-hardware-wallet-digital-asset-security.jpeg)

Ethereum's architectural evolution prioritizes Layer 2 solutions to achieve a 10x scaling factor, enhancing network throughput and interoperability.

- 
### [Designing Transaction Fee Mechanisms in a Post-MEV Blockchain World](https://incrypthos.com/research/designing-transaction-fee-mechanisms-in-a-post-mev-blockchain-world/)
![An intricate abstract structure showcases sleek metallic components as network conduits, interwoven with granular white and vibrant blue crystalline formations. The blue formations, representing on-chain data crystallization, emerge from a powdery substrate, symbolizing raw transaction inputs. This visual metaphor depicts modular blockchain architecture, illustrating complex block finalization and distributed ledger technology. The interplay highlights cryptographic primitive integration within a decentralized network, emphasizing data propagation, consensus mechanisms, and shard interconnection.](https://incrypthos.com/wp-content/uploads/2025/09/modular-blockchain-architecture-with-on-chain-data-crystallization.jpeg)

This research unveils the inherent challenges of transaction fee mechanism design in MEV-rich environments, proposing a novel framework to balance incentives.

- 
### [Protocol-Native MEV Brokering Enhances Blockchain Economic Fairness](https://incrypthos.com/research/protocol-native-mev-brokering-enhances-blockchain-economic-fairness/)
![A futuristic, segmented white sphere, emblematic of a blockchain protocol or network node, partially submerged in dark, reflective water. From its central aperture, vibrant blue, crystalline substance, symbolizing generated digital assets or staking rewards, emerges, forming an icy mass. This illustrates value creation within a decentralized finance DeFi ecosystem, suggesting a smart contract autonomously issuing tokens or distributing yield from a liquidity pool. The 'frozen' aesthetic implies assets in cold storage or locked in a Proof-of-Stake PoS consensus mechanism, highlighting immutable ledger and tokenomics.](https://incrypthos.com/wp-content/uploads/2025/09/modular-protocol-emitting-frozen-digital-assets-into-liquidity-pools.jpeg)

A novel ticketing mechanism directly integrates Maximal Extractable Value distribution into the Ethereum protocol, fundamentally reshaping network economics.

- 
### [Formalizing MEV: A Foundational Blockchain Attack Theory](https://incrypthos.com/research/formalizing-mev-a-foundational-blockchain-attack-theory/)
![A sleek, metallic, modular blockchain infrastructure component, rendered in cool blue-silver, rests on a textured, foundational layer. Its robust, engineered panels signify a resilient DLT network, designed for high-performance consensus protocols. A translucent, crystalline sphere, symbolizing a secure digital asset or genesis block, is centrally mounted. This setup embodies a decentralized autonomous organization's core mechanism, enabling secure cold storage, cross-chain interoperability, and oracle network integration, crucial for Web3 network security.](https://incrypthos.com/wp-content/uploads/2025/09/modular-blockchain-architecture-safeguarding-digital-asset-custody.jpeg)

This research establishes a rigorous theoretical framework for Maximal Extractable Value, enabling provably secure mitigation strategies for blockchain vulnerabilities.

- 
### [Game Theory Models MEV, Mitigates Extraction with Mechanism Design](https://incrypthos.com/research/game-theory-models-mev-mitigates-extraction-with-mechanism-design/)
![A large, textured sphere, resembling a celestial body, partially submerges in dark blue liquid, generating dynamic splashes. Smaller white spheres interact with the fluid. This visual metaphorically depicts a decentralized exchange's DEX liquidity pool, where tokenomics drive asset interactions. The main sphere represents a governance token or wrapped asset undergoing smart contract execution, influencing market volatility. The liquid signifies available liquidity, while smaller spheres are other digital assets or stablecoins within the DeFi ecosystem.](https://incrypthos.com/wp-content/uploads/2025/09/decentralized-liquidity-pool-dynamics-tokenomics-smart-contract-execution.jpeg)

This research formalizes Maximal Extractable Value dynamics through a multi-stage game, revealing systemic inefficiencies and quantifying mitigation strategies.

- 
### [Boundless Mainnet Activates Proof of Verifiable Work with ZK Coin](https://incrypthos.com/tech/boundless-mainnet-activates-proof-of-verifiable-work-with-zk-coin/)
![A detailed view of a high-performance blockchain node's internal validator mechanism, featuring a central metallic shaft representing core processing units. This mechanism is integrated within a vibrant blue housing, symbolizing the on-chain settlement layer. Surrounding the active components are numerous white, cloud-like formations, abstractly depicting off-chain computation batches, specifically Zero-Knowledge Rollups. These elements highlight advanced scalability solutions, ensuring enhanced transaction throughput and data integrity within a distributed ledger technology network. The design emphasizes efficient consensus protocol execution and robust cryptographic proofs for secure operations.](https://incrypthos.com/wp-content/uploads/2025/09/high-performance-blockchain-node-executing-zero-knowledge-rollup-batches.jpeg)

The Boundless mainnet integrates zero-knowledge proofs to establish a verifiable compute market, fundamentally reshaping blockchain scaling economics.

- 
### [Formalizing Maximal Extractable Value for Blockchain Security Proofs](https://incrypthos.com/research/formalizing-maximal-extractable-value-for-blockchain-security-proofs/)
![A close-up reveals a sophisticated hardware component, featuring a prominent brushed metal cylinder partially encased in a translucent blue material, suggesting advanced cooling or data flow visualization. This element likely functions as a secure element or cryptographic processing unit within a digital asset custody solution. Below, a dark, undulating surface, possibly a biometric sensor or transaction confirmation button, is framed by polished metal. The design emphasizes tamper-proof enclosure and robust private key management, crucial for cold storage and multi-signature security in decentralized finance applications, ensuring firmware integrity and protection against supply chain attacks.](https://incrypthos.com/wp-content/uploads/2025/09/tamper-proof-hardware-wallet-private-key-management-system.jpeg)

This research establishes a rigorous theoretical framework for Maximal Extractable Value, enabling formal proofs of smart contract security against MEV attacks.

- 
### [Cardinal Protocol Bridges Bitcoin Liquidity to Cardano DeFi](https://incrypthos.com/web3/cardinal-protocol-bridges-bitcoin-liquidity-to-cardano-defi/)
![A faceted, crystalline structure, predominantly deep blue and silver, covered in frost, represents a cryptographic primitive or a network node. The geometric precision suggests algorithmic integrity and immutable ledger principles. Its frosty exterior evokes cold storage security for digital assets within a decentralized architecture. The central aperture could symbolize a data gateway for transaction validation or a cross-chain bridge in a Web3 ecosystem, emphasizing network security and protocol interoperability.](https://incrypthos.com/wp-content/uploads/2025/09/cryptographic-primitive-immutable-ledger-digital-asset-cold-storage-network-node.jpeg)

Cardinal introduces the first Bitcoin DeFi primitive on Cardano, enhancing ecosystem liquidity and expanding interoperability for decentralized applications.

**Tags:** [Blockchain](https://incrypthos.com/news/blockchain/), [Blockchain Scaling](https://incrypthos.com/news/blockchain-scaling/), [Centralized Sequencers](https://incrypthos.com/news/centralized-sequencers/), [Data](https://incrypthos.com/news/data/), [Data Availability](https://incrypthos.com/news/data-availability/), [Decentralization](https://incrypthos.com/news/decentralization/), [Decentralized Finance](https://incrypthos.com/news/decentralized-finance/), [Economic Alignment](https://incrypthos.com/news/economic-alignment/), [Ecosystem](https://incrypthos.com/news/ecosystem/), [EIP-4844](https://incrypthos.com/news/eip-4844/), [Ethereum](https://incrypthos.com/news/ethereum/), [Gas Fees](https://incrypthos.com/news/gas-fees/), [Layer-2](https://incrypthos.com/news/layer-2/), [Layer-2 Solutions](https://incrypthos.com/news/layer-2-solutions/), [Network Interoperability](https://incrypthos.com/news/network-interoperability/), [Protocol](https://incrypthos.com/news/protocol/), [Protocol Architecture](https://incrypthos.com/news/protocol-architecture/), [Rollup Technology](https://incrypthos.com/news/rollup-technology/), [Rollups](https://incrypthos.com/news/rollups/), [Scaling](https://incrypthos.com/news/scaling/), [Security](https://incrypthos.com/news/security/), [Throughput](https://incrypthos.com/news/throughput/), [Transaction Throughput](https://incrypthos.com/news/transaction-throughput/)

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**Original URL:** https://incrypthos.com/tech/ethereum-layer-2-scaling-advances-amidst-centralization-and-economic-challenges/
