Vitalik Buterin unveils the blockchain layer extension model: How does Ethereum use computation and data to break through performance bottlenecks?

ETH0,74%

January 27 News, Ethereum co-founder Vitalik Buterin recently proposed a new blockchain scalability framework, using a “hierarchical structure” to explain why different technical components have varying expansion speeds. He divides the blockchain into three main layers: the top layer is computation, the middle layer is data, and the bottom layer is state. This model is considered a key to understanding Ethereum’s scalability route.

In Vitalik’s view, computation is the easiest part to scale. Through parallel execution, zero-knowledge proofs, and outsourcing some computations to external systems, blockchains can significantly increase throughput without adding trust assumptions. This is also the core logic of most current Layer 2 architectures, which perform many transactions off-chain and only submit the results to the main chain for verification.

In contrast, data expansion is slower than computation. Blockchains must ensure that all critical data can be verified and accessed, which limits scalability. However, with the introduction of data distribution technologies like PeerDAS, Ethereum is reducing node storage and bandwidth pressures, thereby supporting more users and higher data demands while maintaining decentralization.

The real bottleneck lies in the state layer. Vitalik points out that each node must verify and store the entire network state, and the continuous growth of state size raises hardware requirements and could lead to centralization risks in the long run. To address this, he proposes a “hierarchical ascent” approach, using computation and data to replace state as much as possible. Ethereum’s Rollup moves most of the state off-chain, sharding disperses data load, and zero-knowledge proofs reduce on-chain execution costs.

For developers, this layered model has direct design implications: reducing unnecessary on-chain state, relying more on proofs and verifiable data, and shifting complexity to higher levels. With this approach, Ethereum aims to establish a new balance between performance, cost, and decentralization, providing a clearer technical roadmap for the blockchain’s long-term scalability.

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related Articles

ETH and Altcoins Could See Parabolic Surge Upon Following Bullish Russell 2000 ATH Path

ETH and altcoins coils see parabolic surge upon following a bullish indicators.  The Russell 2000 just set a new ATH at 2,798 for the first time. This new ATH indicator is a bullish signal for altcoins. The crypto community is pleased to see that both BTC and ETH are trading at higher

CryptoNewsLand9m ago

Bitmine’s weekly net accumulation exceeds 100k ETH, moving even closer to the “5% of total Ethereum supply” target

Bitmine increases its weekly holdings by 101,627 ETH, bringing its total holdings to nearly 5 million ETH. This article breaks down the logic behind institutional-grade ETH accumulation of staking returns, the trend toward institutionalization, and its impact on Ethereum’s supply structure.

GateInstantTrends39m ago

Arbitrum Security Council Freezes 30,766 ETH From KelpDAO Exploit, 9 of 12 Members Vote in Favor

Arbitrum froze 30,766 ETH from the KelpDAO hack, worked with law enforcement, and recovered about a quarter of assets, while locking funds pending governance amid decentralization versus security debates. Abstract: This article reports that the Arbitrum Security Council froze 30,766 ETH (about $70 million) tied to the KelpDAO exploit, with nine of twelve votes, and moved funds to a secure wallet in coordination with law enforcement. The operation targeted only affected assets to minimize network disruption. The exploiter is suspected to be DPRK-associated. The breach began April 18 via a LayerZero-powered bridge, draining 116,500 rsETH (~$292 million). About a quarter of stolen assets have been recovered. The frozen funds will remain locked until governance and legal authorities decide the next steps, prompting debate over decentralization versus security.

GateNews1h ago

Tether Mints 1 Billion USDT on Ethereum

Gate News message, April 21 — According to Onchain Lens, Tether minted 1 billion USDT on Ethereum eight minutes ago.

GateNews1h ago

OCBC Launches GOLDX Tokenized Gold Fund on Ethereum and Solana

OCBC launches GOLDX, a tokenized physical gold fund on Ethereum and Solana with Lion Global Investors and DigiFT, targeting institutions and Web3 participants; tokenized RWAs reach $29B on chains. OCBC, with Lion Global Investors and DigiFT, introduced GOLDX, a tokenized version of the LionGlobal Singapore Physical Gold Fund on Ethereum and Solana. The product targets institutional investors and high‑net‑worth individuals, allowing purchases with stablecoins or fiat and delivery to blockchain wallets, providing on‑chain exposure to about $525 million in gold assets. OCBC views GOLDX as a milestone linking traditional finance with the decentralized finance ecosystem to attract Web3 participants. The broader context shows rapid growth in tokenized real‑world assets, with RWAs on public blockchains exceeding $29 billion by mid‑April 2026, while gold prices traded in a tight range around $4,775–$4,831 per ounce.

GateNews1h ago

Bitmine bought 101627 ETH last week! Tom Lee: Crypto winter is nearing its end

Bitmine Immersion Technologies (BMNR) announced on April 20 that it purchased 101,627 Ethereum (ETH) last week, the largest week-over-week purchase since 2026, bringing its total ETH holdings to 4,976,000. Bitmine chairman Tom Lee said publicly that the crypto winter is closer to ending than the market expects.

MarketWhisper4h ago
Comment
0/400
No comments