Ethereum’s Layer-2 solutions are showing they can move transactions faster, cost less, and offer more freedom than the traditional Layer-1 networks. Etherealize CEO Vivek Raman recently shared on X, “L2s are faster, cheaper, more customizable. L1s are encumbered by consensus (if they actually want to be decentralized).”
L2s are faster, cheaper, more customizable
— Vivek Raman (@VivekVentures) October 8, 2025
L1s are encumbered by consensus (if they actually want to decentralize)
L2s can build on Ethereum’s world class infrastructure and focus on optimizing execution
“Being an L1 is a bug, not a feature.” https://t.co/QDtID6NWV7
On the other hand, Lighter CEO Vladimir Novakovski said, “Being an L1 is a bug, not a feature. An L1 is just an Ethereum L2 without any of the security and verifiability parts.” This shows that the two see L2s as a practical way to make Ethereum faster and bigger without losing its security.
Privacy innovations fuel Ethereum’s appeal
Ethereum is also working on privacy improvements for its Layer-1 network. The Ethereum Foundation set up “Privacy Cluster,” with 47 experts focused on adding privacy features. These include private payments, confidential transfers using the PlasmaFold L2, and ways to verify information without revealing the details.
Co‑founder Vitalik Buterin stressed this privacy, stating, “I think you are misperceiving the situation…we should have privacy in our digital communications and activities, of a similar type that we had for thousands of years.”
I think you are misperceiving the situation.
— vitalik.eth (@VitalikButerin) September 27, 2025
What I ask for is quite balanced, it's simply that we should have privacy in our digital communications and activities, of a similar type that we had for thousands of years (when we had in-person voice conversations, used cash for…
This work continues the Privacy Stewards for Ethereum (PSE) program and focuses on keeping users’ sensitive data safe. And Ethereum is pairing the speed of L2 solutions with stronger privacy on L1, making the network more secure and reliable.
Institutional adoption signals strength
Ethereum’s neutral position is also drawing attention from Wall Street. Fundstrat Chairman BitMNR said, “I think it’s important for Wall Street to find a public blockchain that’s neutral, and today the biggest one is Ethereum.” As a result, Ethereum’s growth is being driven by faster L2 solutions, enhanced privacy features, and trust from major institutions.
The secret to why Wall Street is building on @ethereum is because it's a "truly neutral chain," according to @BitMNR Chairman @fundstrat
— Coinage (@coinage_media) October 8, 2025
"I think it's important for Wall Street to find a public blockchain that's neutral, and today the biggest one is Ethereum." pic.twitter.com/Zm9BBgqzPI
Layer-2 solutions help Ethereum run faster, cost less, and keep data more private. This shows the network is becoming easier and safer to use.