Ethereum layer-1 positioned as foundational operating system for decentralized finance and identity
Ethereum co-founder Vitalik Buterin has described Ethereum as the “Linux of blockchain,” arguing that the network plays a foundational role similar to the open-source operating system, but for transferring value, managing risk, and coordinating activity on the internet. The comparison underscores Ethereum’s long-term vision as a decentralized, neutral base layer supporting a wide range of applications.
According to Buterin, both Ethereum and Linux are open-source systems that enable highly customized implementations without sacrificing decentralization. Linux allows developers to build tailored operating systems, while Ethereum enables customization through its growing ecosystem of layer-2 (L2) scaling networks. These L2s inherit Ethereum’s security while offering different performance and cost trade-offs.
He emphasized that Ethereum’s base layer must function as a financial, identity, social, and governance home, allowing individuals and organizations to interact without reliance on intermediaries.
There are currently 127 Ethereum layer-2 networks, reflecting a modular scaling strategy designed to support high throughput and experimentation. Supporters argue this approach gives users greater optionality and improved user experience. Critics, however, warn that too many L2s could fragment liquidity and reduce revenue flowing back to Ethereum’s base layer, particularly after protocol upgrades reduced transaction fees.
The analogy highlights Ethereum’s ambition to become the open operating system of the decentralized internet, balancing innovation, scalability, and interoperability while preserving its core principles of openness and autonomy.
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