Ethereum Based and Native Rollups Promise Big Changes

Written by Aaron S.,

Editor-In-Chief

Last Updated: January 27, 2025

Key Takeaways

Ethereum’s “based” rollups shift block-building to all validators, which enhances security and decentralization;
“Native” rollups streamline execution on Ethereum’s core, which boosts app interaction and network efficiency;
Rollup adoption may reduce Layer 2 profits but could unify Ethereum and positively impact ETH’s value.

Ethereum ETH $3,076.74 developers and leaders from its Layer-2 networks are backing the adoption of “based” and “native” rollups.

These methods aim to make Ethereum more secure and less fragmented by changing how transactions are processed and executed.

During a January 25 discussion with Ethereum developers, Jesse Pollak, head of the Layer-2 network Base, described “based” rollups as tools to strengthen Ethereum’s connection to its extensions.

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He explained that these rollups could enhance security and improve integration between Base and Ethereum. Pollak emphasized their flexibility and potential for improving the network as a whole.

“Based” rollups, proposed by Ethereum developer Justin Drake in March 2023, aim to address this issue by handing the sequencing process back to Ethereum’s base layer. This change would make block-building the responsibility of all validators on the network rather than a single entity.

At the same time, “native” rollups would bring transaction execution directly to Ethereum’s core. This could make the network more seamless for developers and users, which enhances how decentralized applications interact on the platform.

However, Layer-2 networks could lose some of the revenue they currently earn from Maximum Extractable Value (MEV)—profits generated by controlling transaction orders. Moving these processes to Ethereum’s base layer could increase the network’s overall revenue and potentially boost ETH’s value.

Additionally, transactions confirmed on Ethereum’s base layer could take about 12 seconds, compared to the near-instant confirmation speeds some Layer-2s currently offer.

Meanwhile, Ethereum recently introduced Etheralize, a new startup led by Wall Street veteran Vivek Raman. What is the company's goal? Read the full story.