Network news
VITALIK BUTERIN SAYS LAYER-2 ROADMAP ‘NO LONGER MAKES SENSE’: Ethereum co-founder Vitalik Buterin said the role of layer-2 networks needs to be rethought as blockchain’s main network continues to scale and transaction costs remain low. In a post on X, Buterin said the original rollup-centric roadmap, which positioned layer-2s as the primary way Ethereum would scale, “no longer makes sense.” This roadmap envisioned layer-2s as secure extensions of Ethereum that would handle most transactions while inheriting Ethereum’s security guarantees, often described as “branded shards” of the network. According to Buterin, two developments have challenged the original vision for layer-2 networks. First, progress among Tier 2 toward later stages of decentralization has been slower and more difficult than expected. Second, Ethereum is now scaling directly at Layer 1, where fees remain low and gas limits are expected to increase significantly. In his opinion, because Ethereum itself scales, layer-2 networks are no longer required to act as official extensions of Ethereum. He also noted that many Tier 2s are “unable or unwilling” to meet the decentralization and security standards required by the model, and that some Tier 2s may intentionally choose not to go beyond “Stage 1”, including for regulatory reasons. — Margaux Nijkerk Read more.
BITCOIN OPEN-SOURCE ALTERNATIVE: Tether released an open source operating system for bitcoin mining, pitching it as a way to make it easier to run mining infrastructure while reducing reliance on closed, vendor-controlled software. The stablecoin issuer said it rolled out MiningOS (MOS), describing it as a modular, scalable mining system designed for everyone from hobby miners to large institutions. The stack is intended to remove the “black box” nature of many mining setups, where hardware and monitoring tools are closely tied to proprietary platforms. “MiningOS changes that – introducing transparency, openness and collaboration into the core of Bitcoin infrastructure,” Tether said on the project’s website, adding that the system is built with “no lock-in.” According to Tether, MOS uses a self-hosted architecture and communicates with connected devices through an integrated peer-to-peer network, allowing operators to manage mining activities without relying on centralized services. The company said miners can adjust settings through a companion platform depending on the scale of their operation and output requirements. CEO Paolo Ardoino called MOS a “complete operational platform” that can scale from a home setup to an “industrial-grade” site spread across multiple geographies. Tether first revealed plans for an open source mining operating system in June, arguing that new miners should be able to compete without having to rely on expensive third-party vendors for software and management tools. — Shaurya Malwa Read more.
ETHEREUM FOUNDATION POST-QUANTUM TEAM: Quantum computers have long been a distant, theoretical threat to blockchain cryptography. But over the past few months, that calculus has changed. While the Bitcoin community has been discussing threats to its protocol for the past year, it appears that the Ethereum community is only now taking its first steps. “Quantum computing is moving from theory to engineering,” said Thomas Coratger, who leads the Ethereum Foundation’s (EF) post-quantum (PQ) team. “It changes the timeline and that means we have to prepare.” Earlier in January, the foundation formally elevated post-quantum security to a strategic priority, creating the dedicated team to drive research, tooling and real-world upgrades to protect the network’s cryptographic foundation. At the same time, major industry players are building their own defenses: Coinbase announced an independent quantum advisory board staffed with leading cryptographers to guide long-term blockchain security planning, signaling that even custodial infrastructure must prepare for quantum-era risks. And across the ecosystem, Optimism is one of Ethereum’s largest layer-2 networks, laying out a formal 10-year roadmap to transition its Superchain stack, from wallets to sequencers, towards post-quantum cryptography, committed to phasing out vulnerable signatures and ensuring continuity across layer-2 networks. Together, these moves mark a noticeable shift: post-quantum security is no longer a fringe topic of the distant future, but a living concern shaping development roadmaps, governance discussions, and ecosystem coordination across Ethereum and beyond. For the EC, the move towards post-quantum security isn’t about sounding the alarm, it’s about not being caught flat-footed. — Margaux Nijkerk Read more.
NEW LOAN PROTOCOL FOR XRP ASSETS: The Flare blockchain introduced lending and borrowing for XRP-linked assets through an integration with Morpho, a crypto-lending protocol that runs across multiple Ethereum-compatible chains. The update lets users borrow and borrow with FXRP, a version of XRP designed for use on Flare, the team behind the blockchain said. Flare slammed the move as a step toward giving XRP owners more ways to earn returns and spend their tokens beyond holding or trading. For years, XRP has had fewer opportunities for decentralized finance (DeFi) than tokens built on smart contract networks. Flare has tried to change that by building tools that let XRP be used in onchain apps while preserving the original XRP on the XRP Ledger. FXRP holders can now deposit their tokens to earn interest or use FXRP as collateral to borrow other assets such as stablecoins. Flare said these positions can also be combined with other features on the network, including stake and dividend products, for users who want more active strategies. Morpho differs from older loan apps that mix many assets into one common pool. Each lending market is created with one collateral asset and one borrowed asset, and the rules for that market are set when it is created. This structure is intended to prevent problems in one market from spreading to others. — Shaurya Malwa Read more.
In other news
- The next evolution of asset management will be “wallet-native,” not just digital, according to Franklin Templeton’s chief innovation officer, Sandy Kaul. Speaking at the Ondo Summit in New York on Tuesday, Kaul said she envisions a future where all financial assets — stocks, bonds, funds and more — are held and managed through tokenized digital wallets. “All of people’s assets will be represented in these wallets,” she said. The panel, which included Cynthia Lo Bessette of Fidelity, Kim Hochfeld of State Street and Will Peck of WisdomTree, agreed that tokenization is no longer a theoretical concept. After years of slow progress, the infrastructure is now in place and applications are expanding beyond early experiments. The panelists warned that building utility and trust is now the industry’s biggest challenge. “The idea of bringing an asset and representing it onchain with a token is the easy part,” said Lo Bessette, head of digital asset management at Fidelity. “The hardest part is building the ecosystem for use.” Despite recent growth, adoption is still early. Hochfeld, State Street’s global head of digital and cash, said much of the current work is focused on internal and client education. “We don’t yet see a rush to the door,” Hochfeld said. “We have to experiment … and see what works.” — Helen Braun Read more.
- TRM Labs, a blockchain analytics startup used by global law enforcement and financial firms, raised $70 million in a new round of funding that pushed its valuation to $1 billion. The Series C round, Fortune reports, was led by Blockchain Capital with participation from Goldman Sachs, Citi Ventures, Bessemer, Thoma Bravo and Brevan Howard. The firm has raised nearly $150 million to date, according to data from TheTie, after eyeing another $70 million in fundraising back in 2023, along with other smaller fundraising rounds that bring the total up to $220 million. The firm’s software helps track cryptocurrency transactions across multiple blockchains, a service that is increasingly in demand as cryptocrime becomes more complex. TRM counts several major government agencies, including the IRS and FBI, among its clients, as well as major banks. It was an early initiative to track not just bitcoin but various other cryptocurrencies, a decision that set it apart from the competition. That edge has become more valuable as criminal networks diversify their use of tokens and platforms. — Francisco Rodrigues Read more.
Legislation and policy
- At a White House meeting called to thaw the ice between crypto firms and Wall Street bankers, the crypto insiders — who far outnumbered the bankers — came away feeling that the banks were dragging their heels to make a deal on crypto market structure legislation. The White House gave them all new marching orders, according to people familiar with the negotiations: Come to a compromise on new language on the stablecoin dividend before the month is out. The crypto industry’s top political priority is still struggling to make progress in the US Senate, and the longer it is delayed from getting a floor vote in the overall Senate, the less likely it is to happen this year. The meeting – chaired by President Donald Trump’s crypto advisor Patrick Witt – was largely focused on whether stablecoins should be linked to dividends and rewards. Policy experts from the crypto industry and Wall Street banks gathered in the White House diplomatic reception room for more than two hours to discuss how to revise the bill’s stickiest provisions, the people said. Talks will continue with a narrower group, the people said, and the White House has asked them to come to the table ready to agree on actual changes to the bill’s language. One of the people said the bank representatives were members of trade associations and may need to get buy-in from their members before they can move forward in negotiations. — Jesse Hamilton Read more.
- Rui-Siang Lin, the alleged operator of the dark web drug marketplace “Incognito Market”, was sentenced to 30 years in US federal prison, according to a statement from the US Attorney’s Office for the Southern District of New York, ending one of the largest online drug market prosecutions since Silk Road. Lin, a 24-year-old Taiwanese national who used the online alias “Pharaoh,” pleaded guilty in December 2024 to drug conspiracy, money laundering and conspiracy to sell counterfeit and abused drugs. Prosecutors said the platform processed more than $105 million in illegal drug sales between October 2020 and March 2024, facilitating more than 640,000 transactions and serving hundreds of thousands of buyers worldwide. “Rui-Siang Lin was one of the world’s most prolific drug traffickers, using the Internet to sell more than $105 million in illegal drugs throughout this country and around the globe,” U.S. Attorney Jay Clayton said in a statement. “While Lin made millions, his crimes had devastating consequences. He is responsible for at least one tragic death, and he exacerbated the opioid crisis, causing misery for more than 470,000 drug users and their families.” — Sam Reynolds Read more.
Calendar
- 10.-12. February 2026: Consensus, Hong Kong
- 17.-21. February 2026: EthDenver, Denver
- 23.-24. February 2026: NearCon, San Francisco
- March 30-Apr. 2, 2026: EthCC, Cannes
- 15-16 Apr. 2026: Paris Blockchain Week, Paris
- 5.-7. May 2026: Consensus, Miami
- 3.-6. November 2026: Devcon, Mumbai
- 15.-17. November 2026: Solana Breakpoint, London
