Vitalik's Latest Speech: The Three Major Bottlenecks of Ethereum L1 and Solutions Revealed

Author: tcoratger; Translation: Whitepaper Blockchain

Ethereum is evolving from a conceptual world computer into a powerful, privacy-preserving stack.

From EIP-7732 to zkVMs and Lean Ethereum, this is a technical analysis of @VitalikButerin’s latest talk at Devconnect ARG.

Philosophy: Verification vs. Trust

Centralized entities rely on “not being evil.”

Ethereum enforces “cannot be evil” through protocol constraints. It creates a trusted, neutral platform that verifies user state instead of trusting institutional solvency.

World Computer

Unlike purpose-built protocols, Ethereum embraces general-purpose flexibility.

It’s not built for infinite scalability (e.g., LLM inference), but for global consensus. It maintains a single state and withstands geopolitical pressure.

Validity and Double Spending

Beyond DeFi, the chain arbitrates ordering. Without consensus, peer-to-peer networks enable double spending.

Validity extends to proof of inexistence—cryptographically proving the scarcity of assets or that specific events did not occur.

Current L1 Limitations

Isolated blockchains have flaws:

• Privacy: Transactions are public (“Your bank account on Twitter”).
• Latency: Decentralization limits speed; <50ms requires centralization.
• Data: No direct access to real-world data without oracles.

Cryptographic Stack

Solution: Ephemeral cryptography.

• ZKPs (Zero-Knowledge Proofs): Verification without data leakage.
• MPC/FHE (Multi-Party Computation/Fully Homomorphic Encryption): Compute on encrypted inputs.

This shifts the model to consuming centralized collaborative computation.

Scalability (2025-26)

Gas limits are increasing.

Key upgrades:

• EIP-7732 (PBS): Validators spend more time processing, without leading to centralization.
• Block-level access lists: Enable batch transaction processing, breaking the serial execution bottleneck.

The Return of Full Nodes

Syncing requires TBs of data and days of time. zkVMs change this.

Via SNARKs, execution is verified rather than recomputed, making computational requirements virtually zero. This enables mobile-native nodes and decentralization.

Censorship and User Experience (2026-27)

• FOCIL: Allows a broader validator set to propose “mini-blocks”, enhancing inclusion guarantees.
• Account abstraction: Smart wallets enable key rotation and social recovery, reducing centralized reliance.

Lean Ethereum (Lean Ethereum) (Long-term)

Optimizing the stack:

• zk π-type coordinates (Poseidon).
• Formal verification.
• Single-slot finality (Single-Slot Finality).
• Post-quantum resistance.

Focus is on security, simplicity, and mathematical optimality.

Conclusion

Ethereum is the standard-setter for a free, open Internet.

By combining L1 robustness with privacy layers and zk technology, it enables massive-scale collaboration.

The goal remains: a world of trust and cooperation.