Ethereum’s Solution to Layer 2 Fragmentation
Ethereum has just shared new technical specifications for its Interop Layer, which aims to solve one of the network’s most persistent problems. The system, first announced earlier this summer, is designed to make Ethereum’s growing Layer 2 ecosystem operate more like a single chain rather than separate networks.
Yoav Weiss from Ethereum’s Account and Chain Abstraction team explained that the Ethereum Interop Layer (EIL) would allow users to send tokens, mint NFTs, and conduct trades across different rollups without needing to switch networks or use bridges. This approach could significantly reduce the complexity that users currently face when moving between different Layer 2 solutions.
How the Interop Layer Functions
Marissa Posner from the Ethereum Foundation’s Product team provided some clarity on how this system actually works. She mentioned that EIL is automatically compatible with all EVM Layer 2s, which means it doesn’t require explicit integration with each individual rollup. “Since all we need is that the L2 is an EVM compatible rollup, anyone can deploy EIL,” Posner told The Defiant.
For the initial version, there are a few basic requirements: the Layer 2 must settle to Ethereum’s main layer, expose a canonical bridge, and maintain EVM compatibility. It’s a fairly straightforward set of conditions that most established rollups should meet.
To enable these multichain transactions, wallets will need to incorporate the EIL SDK or potentially use the upcoming ERC-5792 standard. ERC-4337 wallets will need to add a multichain validation module, while externally owned accounts can delegate using EIP-7702 to a compatible implementation that the Ethereum Foundation plans to provide.
Current Status and Next Steps
As of November 18th, the Interop Layer is available for public testing on testnet. Posner emphasized that a mainnet rollout will follow after the protocol receives sufficient feedback and undergoes proper testing and security audits. The team is actively seeking input from the community and has allocated $6,000 in bounties for ETHGlobal Buenos Aires happening from November 21-23.
Already, Ambire has implemented EIL in its public codebase and intends to support mainnet deployment in the future. Ethereum also has a demonstration application called Stitch, which serves as a cross-chain dapp aggregator that’s currently live.
Posner noted that they’re already in discussions with several wallet and dapp teams about integration. Any projects interested in learning more about EIL are encouraged to reach out to the Ethereum Foundation directly.
This development comes at a time when Ethereum remains the dominant smart contract platform, with over $72.5 billion in total value locked across DeFi applications according to DefiLlama. Ether continues to trade around $3,000 with a market capitalization approaching $364 billion, maintaining its position as the second-largest cryptocurrency.
The Interop Layer represents Ethereum’s attempt to address the fragmentation that has emerged as more Layer 2 solutions have launched. Instead of users needing to manage multiple networks, bridges, and different gas tokens, the vision is that they’ll be able to interact with various L2s as if they were all part of a single, unified chain. It’s an ambitious goal, but one that could significantly improve the user experience if implemented successfully.
