Vitalik Buterin Highlights Importance of Fast Withdrawals for Ethereum Layer 2

According to BlockBeats, Ethereum co-founder Vitalik Buterin expressed enthusiasm over the progress of mainstream Layer 2 solutions reaching Stage 1, known as the 'limited training wheels' phase. He emphasized the significance of achieving rapid withdrawals through zero-knowledge proof systems, considering it more crucial than advancing to Stage 2, which involves 'no training wheels.' Fast withdrawal times are vital as they reduce liquidity providers' capital costs. If native withdrawal times can be shortened to under an hour in the short term and to 12 seconds in the medium term, it would further solidify Ethereum Layer 1 as the default platform for asset issuance and the economic center of the Ethereum ecosystem. Buterin suggested moving away from the Optimistic proof system, which inherently requires several days for withdrawals. Historically, zero-knowledge proof technology has been immature and costly, making the Optimistic proof a wise and safe choice. However, recent developments are rapidly changing this scenario, with the 2-of-3 ZK + OP + TEE proof system strategy balancing security, speed, and maturity. In the long term, this will enable nearly instant native asset transfers across L2 via L1. BlockBeats notes that Stage 1 and Stage 2 are used to assess the maturity and decentralization of Layer 2 rollups. Stage 1 allows for some less decentralized features but requires rollups to meet basic security and functionality standards. Stage 2 demands stronger decentralization and security, approaching a fully decentralized state.