- Ethereum alignment is Vitalik Buterin’s new strategy to improve the network.
- This concept ensures that different Ethereum projects follow the principles of building a unified ecosystem.
- Applications should exercise integration, decentralization, and cooperation.
Ethereum is constantly exploring strategies to improve its network. This second-largest blockchain network has been going through a social challenge in the Ethereum ecosystem: proper balancing in the ecosystem. Different researchers and developers are part of the Ethereum network.
It includes client teams, researchers, layer 2 teams, application developers, and local community groups. All projects need to be collectively working towards one main goal to feel like one Ethereum ecosystem. Integrating, decentralization, and cooperation are crucial for enhancing cohesion across various sectors of the Ethereum ecosystem.
Recently, co-founder Vitalik Buterin proposed “Ethereum Alignment” as a solution to tackle balancing challenges in the ecosystem. According to Buterin, the concept of alignment should be made more legible.
Vitalik Buterin on Making Ethereum Alignment Legible
On September 28, 2024, Vitalik Buterin shared his strategy to use the alignment concept properly to enhance the performance of the Ethereum network. Making Ethereum alignment legible is a part of Buterin’s vision. Earlier, this concept was poorly defined.
Now. Buterin has said that the concept of alignment should be divided into specific properties, which specific metrics can represent. These metrics include open standards, open source, positive-sum, decentralization and security. Also, Vitalik Buterin wants to have specific criteria for projects to follow the proper alignment.
It will help these Ethereum based projects to work cohesively towards common goals. These projects need to follow values alignment (open source, minimize centralization, support public goods), economic alignment (using ETH as a token where possible), and technological alignment (work with ecosystem-wide standards).
He emphasizes that alignment should not be about having the right friends but about adhering to these principles to build a unified Ethereum ecosystem. Also, Buterin wants entities like L2beat, a layer2 analytics platform, to track if projects are following the criteria of Ethereum Alignment or not. A proper Ethereum alignment strategy could increase investor confidence. It will lead to a surge in the ETH price. A cohesive ecosystem can attract more developers and projects.
Metrics To Measure Ethereum Alignment
According to Vitalik Buterin, some metrics should be used to measure the alignment of Ethereum projects with long-term goals.
1. Open Source
According to Buterin, core infrastructure components of an Ethereum application should be open source. He called FSF-free software and OSI open source the gold standard. Buterin promotes open-source software for Ethereum applications due to its benefits.
It will keep codes open and inspectable for safety. It will reduce the risk of proprietary lock-in and enable permissionless third-party improvements. Also, he does not want the entire project to be fully open-source.
2. Open Standards
Buterin said Ethereum-based applications must aim for interoperability with the entire ecosystem by building on open standards. The common Ethereum standards are ERC-20 and ERC-1271.
3. Decentralization and Security
Ethereum projects need to avoid points of trust, minimize censorship vulnerabilities, and minimize centralized infrastructure dependency. Vitalik Buterin suggested that the metrics of the walkaway test and the insider attack test should be used to boost decentralization.
The walkaway test requires Ethereum projects to decide whether they can keep working if the team and servers disappear tomorrow. Then, the insider attack test requires the project to assess the damage that could be caused if the team itself attacks the system.
4. Positive-Sum
Buterin has said that projects should contribute to the entire Ethereum community. Their goals should align with the interests of ETH holders and the broader world. Projects should hold ETH tokens to contribute to its network effect. They should donate a percentage of their tokens to public goods in the Ethereum ecosystem.
Disclaimer
The information provided in this article is for educational purposes. It does not constitute financial advice. Readers should conduct their own research before investing in cryptocurrencies. The author is not liable for any actions taken based on the information provided in this article.
