Ethereum Founder Vitalik Defends Coinbase’s New Blockchain Amid Controversy – What’s Going On?

Ethereum co-founder Vitalik Buterin defended Coinbase’s Base blockchain against criticism, emphasizing that Layer 2 solutions provide genuine security guarantees through Ethereum’s base layer rather than operating as “ glorified servers .” His comments addressed growing confusion about L2Beat’s role as a security assessment platform and misconceptions about Layer 2 custody ￰1￱ clarified that Base maintains non-custodial properties where users retain ultimate control over their funds through smart contract logic on Ethereum’s main ￰2￱ defense came amid broader discussions about Ethereum’s economic sustainability and infrastructure development ahead of the December 3 Fusaka ￰3￱ is doing things the right way: an L2 on top of Ethereum, that uses its centralized features to provide stronger UX features, while still being tied into Ethereum's decentralized base layer for ￰4￱ does not have custody over your funds, they cannot steal funds or… ￰0￱ — ￰5￱ (@VitalikButerin) September 22, 2025 The intervention occurred as Layer 2 networks face scrutiny over centralized features while providing enhanced user ￰6￱ incidents, including Sony’s Soneium censorship attempts and the dYdX v3 shutdown , have highlighted both the risks and protective mechanisms built into modern L2 architectures.

Meanwhile, Ethereum’s on-chain revenue fell 44% to $14.1 million in August despite ETH reaching new highs, which has raised questions about the network’s long-term economic model as Layer 2 adoption reduces base layer fee generation. Real-World Proof: When Layer 2 Security Actually Works The dYdX v3 shutdown provided concrete evidence of Layer 2 escape mechanisms functioning as ￰7￱ the decentralized exchange ceased operations, users accessed over $70 million in trapped funds through StarkEx’s built-in “Escape Hatch” system, with $30 million successfully withdrawn using L2Beat’s open-source ￰8￱ escape process required users to submit three Ethereum transactions, each accompanied by a Merkle proof verifying their asset ￰9￱ technically complex, the mechanism operated without requiring permission from dYdX operators, validating Buterin’s claims about Layer 2 non-custodial properties.

Similarly, Sony’s Soneium network showed censorship resistance when the company attempted to block “unapproved” tokens at the RPC level. Sony's L2 just showed us something wild about OP Stack censorship resistance: Their attempt to block "unapproved" tokens spectacularly backfired in less than 24 hours after launch. Here's exactly what went down ￰10￱ — f(gautham) (@gauthamzzz) January 14, 2025 A developer bypassed the sequencer entirely by forcing transactions through Ethereum’s main chain, proving that OP Stack architecture prevents permanent censorship, regardless of operator ￰11￱ incident destroyed early token positions worth thousands of dollars before the workaround emerged.

However, the successful bypass validated OP Stack’s design philosophy that forces all Layer 2 networks to inherit Ethereum’s core security properties, including transaction finality ￰12￱ real-world examples support Buterin’s argument that Layer 2 solutions represent genuine extensions of Ethereum rather than independent systems with custody ￰13￱ concrete pathways implemented in smart contract logic have proven functional under stress conditions, including operator shutdowns and attempts at ￰14￱ Seeks Sustainable Revenue Beyond Speculation Notably, Buterin also highlighted L2 security, and his mathematical framework for Layer 2 security stages reveals why gradual progression from centralized control to full decentralization makes ￰15￱ analysis shows that Stage 1 rollups with 75% security council override requirements provide optimal security when proof systems remain unproven.

However, Stage 2 systems should only be activated once sufficient mathematical confidence in the underlying cryptographic systems is achieved.