Development of the Layer-2 Ecosystem: Comparing Arbitrum, Optimism, zkSync, Base and Others

The growth of decentralised finance and blockchain-based applications has placed increasing demand on Ethereum’s main network, leading to high fees and congestion. Layer-2 (L2) scaling solutions have become essential infrastructure to address these limitations. By 2025, networks like Arbitrum, Optimism, zkSync, and Base play crucial roles in enabling faster and cheaper transactions while preserving Ethereum’s security.

Arbitrum and Its Role in Scaling Ethereum

Arbitrum operates as an optimistic rollup, aggregating multiple off-chain transactions and submitting them as a single batch to Ethereum’s mainnet. This approach drastically reduces gas fees and increases transaction throughput while maintaining strong security guarantees. It has become one of the most widely adopted L2 networks, especially among decentralised finance (DeFi) projects and blockchain gaming platforms.

By 2025, Arbitrum consistently ranks among the top Layer-2 solutions by total value locked (TVL), demonstrating strong developer trust. Its infrastructure includes advanced bridges, compatible wallets, and developer tools, which ease the migration process from Ethereum’s Layer-1. The launch of Arbitrum Stylus, which supports multiple programming languages, further widens its appeal.

Arbitrum’s governance is community-driven through the Arbitrum DAO. Token holders can vote on proposals, fund ecosystem initiatives, and influence the protocol’s roadmap, aligning with Ethereum’s ethos of decentralisation.

Limitations and Future Outlook for Arbitrum

Arbitrum’s reliance on fraud proofs and dispute windows creates delayed transaction finality compared to zero-knowledge (ZK) rollups. This could become a competitive disadvantage as ZK technology becomes more scalable and cost-efficient in the coming years.

The development team is working to reduce withdrawal times, improve cross-chain interoperability, and enhance user experience. Experiments with hybrid models combining optimistic and ZK approaches are also underway to stay competitive.

If Arbitrum succeeds in integrating these innovations while retaining its user base and liquidity, it may continue to dominate the Layer-2 landscape beyond 2025.

Optimism and the OP Stack Strategy

Optimism uses optimistic rollups but sets itself apart with its OP Stack—a modular framework allowing anyone to deploy their own Layer-2 chain. This has led to the emergence of the “Superchain,” a network of interconnected L2s powered by the OP Stack.

By 2025, several major blockchain projects have launched their own chains using this framework, creating shared liquidity and enhancing interoperability. This modular structure attracts developers who want scalability without building from scratch.

Optimism’s Retroactive Public Goods Funding has further strengthened its ecosystem by rewarding developers whose work benefits the broader network, encouraging long-term value creation.

Challenges and Evolution of Optimism

Optimism faces growing competition from ZK-based solutions offering faster finality and potentially lower costs. Maintaining performance while expanding horizontally through the Superchain model will be essential to its success.

Governance also becomes more complex as more chains join the Superchain. Coordinating upgrades, security policies, and interoperability standards across multiple chains requires robust governance mechanisms.

Upcoming upgrades, including fault-proof systems to increase decentralisation and security, will play a decisive role in Optimism’s future sustainability as a leading L2 ecosystem.

zkSync, Base, and the Rise of ZK Rollups

zkSync and Base represent the new generation of ZK-powered L2 networks. ZK rollups batch transactions off-chain and submit validity proofs to Ethereum, providing instant finality and stronger security than optimistic rollups. This makes them ideal for high-frequency trading and financial applications.

zkSync, developed by Matter Labs, offers full EVM compatibility, account abstraction, and the ability to pay gas fees in any token, making it appealing to both developers and users. It has secured strong backing through grants and venture funding.

Base, developed by Coinbase and built on the OP Stack, has started incorporating ZK elements for efficiency. Its seamless integration with Coinbase’s exchange and fiat gateways has accelerated user adoption since its 2023 launch.

The Future Landscape of ZK-Based L2 Solutions

ZK technology still faces challenges like high computational costs and complex development processes. zkSync and other ZK rollups are working to optimise proof generation and reduce hardware requirements, which are key to broader adoption.

Regulatory scrutiny may also increase as these networks grow. Data privacy, security, and consumer protection will be major factors shaping their long-term success.

Despite these challenges, momentum behind ZK rollups is strong. As costs drop and developer tools mature, ZK-based Layer-2 solutions could become the dominant force in Ethereum’s scaling ecosystem in the years ahead.