Native Rollups: The Future of Ethereums Financial Recovery and Enhanced Scalability

Second-layer solutions (**L2**) provide relatively fast and cost-effective interactions with **Web3** and remain a crucial aspect of Ethereum’s scalability. However, they necessitate an enhanced user experience (UX) and pose challenges to the economic framework of the second-largest cryptocurrency, complicating matters for developers. These developers are often required to create and maintain their proof mechanisms, rely on the security governance of **rollups**, and manually implement changes following network upgrades.

In March 2023, leading Ethereum developer Justin Drake proposed enhancing network decentralization by implementing base rollups. This approach aims to distribute workload among all validators while limiting the reliance on external mechanisms. Vitalik Buterin first introduced the concept back in 2021.

L2 solutions like **Arbitrum** and **Base** attract users with their speed, thanks to the use of fast yet centralized sequencers that dictate the order of transaction processing and their addition to the blockchain.

Following a similar principle, a new project called **MegaETH** has been developed, with its public testnet launched on March 21, 2025. Its early-stage architecture involves operating with a single sequencer to achieve ultra-fast transactions.

On January 25, 2025, an online meeting took place among Ethereum developers and leaders of L2 solutions to discuss transitioning to base rollups.

Jesse Pollak, head of Base L2, described base rollups as a «flexible and powerful tool» that could enhance Base’s connectivity with Ethereum and improve security.

Ben Jones, director of the **Optimism Foundation**, endorsed the project, stating that the technology would facilitate better interactions between L1 and L2.

By June 2024, Justin Drake identified the **Taiko** startup as the first base rollup, unveiling a development roadmap for «native» solutions on Ethereum.

According to **Cointelegraph**, Declan Fox, head of **zkEVM Linea**, predicted that new base rollups would emerge within the year, although he acknowledged that transitioning existing L2 solutions would take more time due to the need to develop new compatibility standards.

In January 2025, Drake authored a post discussing the system of «native» rollups, explaining that the concepts of base and native rollups are applicable across various blockchain mechanisms.

While base rollups focus on block creation and ordering, native rollups utilize the underlying L1 as their execution layer. A rollup that combines both approaches approaches an ideal state.

There are several primary methods of confirming transactions in **EVM**-compatible L2 networks:

The proposal for native rollups indicates that L2 solutions will no longer need to develop complex proof systems and security councils. Instead, they can simply relay a list of transactions to the base layer of Ethereum.

Proofs act as compact cryptographic snapshots that record asset ownership within rollups, which are periodically documented on Ethereum.

Justin Drake describes an execution precompiler (EXECUTE-precompile) that transforms native rollups into «programmable sharded mechanisms.» This process resembles Ethereum’s earlier sharding plan but in a modified form.

The term «precompiler» refers to a specialized type of contract integrated into the Ethereum protocol, enhancing the capabilities of EVM.

By recording L2 states on Ethereum, rollups benefit from its decentralized network, allowing users to withdraw funds and force transactions that have been censored by the sequencer freely.

Native rollups are designed to process transactions while inheriting the security of L1 with just a few lines of code. They are also intended to facilitate automatic network upgrades without governance votes or security council interference.

The elimination of the need to duplicate Ethereum’s logic would lower maintenance costs and simplify security, keeping L2 in sync with the base layer. Users can expect enhanced trust with native rollups, making it feasible to store substantial savings.

Furthermore, native rollups may restore a portion of revenues back to the base Ethereum level, which could positively impact ETH’s value in the long run.

However, they will need to forfeit a significant share of revenues derived from **MEV**—the extra profits generated by block producers through adjusting the order, inclusion, or exclusion of transactions. They will also have to let go of large sums collected from fees on centralized sequencers.

According to Dune Analytics, as of the writing, Arbitrum garnered around **64,250 ETH** (~$122 million) from fees, while Base received approximately **34,570 ETH** (~$66 million).

During an **AMA** session on February 25, 2025, Vitalik Buterin, Justin Drake, and Dan Kraid Feist discussed the network’s development.

Buterin expressed his support for native rollups, while Drake elaborated on their potential.

*»The discussion surrounding this innovation is just beginning. From my experience, selling the concept of native rollups to EVM-equivalent rollups is surprisingly easy. If the latter has the opportunity to become native, why not? It’s a significant enhancement that L1 provides virtually for free,»* Drake explained.

He indicated that Arbitrum, Base, Optimism, and **Scroll** have already shown interest in transitioning to native rollups.

Native rollups do not require separate proof systems or external validators, as all processes are handled by Ethereum. This results in several key advantages for L2:

Native rollups address governance and security issues but do not eliminate all scalability constraints of Ethereum, sometimes imposing additional limitations.

While native solutions represent a significant advancement in Ethereum’s scalability, it’s unlikely that every rollup will adopt this approach. Instead, as Dogan from the Cyber Fund suggests, the ecosystem may evolve into three primary categories.

Drake anticipates the first iteration of native rollups will emerge next year. However, achieving full technical maturity, including integrated ZKPs and increased gas limits, will take more time.

Native rollups offer a clear development path where L2 is synchronized with Ethereum without complex governance structures, creating a user-friendly and secure experience for developers and the entire ecosystem.

Given the contributions of Ethereum engineers to the ecosystem and the evolution of the entire blockchain industry, commensurate returns from their creations—second-layer solutions—are to be expected.