Paradigm Calls for Faster Ethereum Protocol Updates Without Compromising Core Values

Crypto venture capital firm Paradigm has urged Ethereum developers to accelerate protocol updates in order to fulfill the blockchain’s ambitious roadmap, without sacrificing its core principles. In a blog post on January 25, Paradigm argued that Ethereum's core protocol could evolve much more quickly and effectively to keep pace with changing market dynamics.

“We believe Ethereum’s core protocol could be improving at a faster rate,” Paradigm stated, emphasizing that there are several high-impact improvements that could be implemented right away. “Ethereum can move towards these changes without compromising its values,” the firm added.

Historically, Ethereum has rolled out roughly one protocol update per year, but Paradigm suggests that the network could push out more frequent updates to drive innovation and better meet the needs of the crypto space. The venture capital firm also acknowledged the ongoing debates surrounding the network’s priorities—whether to focus on base-layer development or layer 2 solutions, decentralization versus efficiency, and other design trade-offs. However, Paradigm cautioned that these discussions may be premature and could result in unnecessary rigidity.

“Discussions about trade-offs in values might hold back progress,” Paradigm explained. “Ethereum has the talent and resources—exceptional researchers and engineers—who are eager to build the future. Empowering them with a clear mandate to move faster will help Ethereum solve problems more quickly and avoid getting bogged down in early-stage debates.”

Ethereum’s core values, including decentralization, openness, and neutrality, remain at the heart of the network's design. Paradigm, however, believes that accelerating protocol updates is crucial to pushing blockchain innovation forward and meeting Ethereum’s ambitious goals.

The firm also argued that the development of client diversity should not come at the cost of shipping updates more quickly. To facilitate faster innovation, Paradigm pointed to the Ethereum testnet Reth, which was developed to allow developers to experiment with new features.

One of the key areas Paradigm wants to see addressed is Ethereum’s Layer 2 scaling solutions. The firm advocates for Ethereum Layer 2s to inherit security directly from the base layer through “native” rollups, a proposal that received support from various Ethereum Layer 2 executives the same day Paradigm’s post was published. This change would enhance scalability while maintaining the security and integrity of the Ethereum network.

In addition, Paradigm called for improvements to Ethereum’s wallet infrastructure, specifically to simplify the user experience. A major part of this would involve eliminating the need for users to remember private keys, a step that would make the platform more user-friendly and accessible to a broader audience.

The Ethereum Foundation has recently signaled its commitment to furthering the Ethereum ecosystem, announcing a significant move to allocate 50,000 Ether—worth approximately $160 million—to to support the growth of decentralized finance (DeFi) projects within the Ethereum network. Furthermore, Ethereum co-founder Vitalik Buterin revealed that the Ethereum Foundation would undergo organizational changes to better support developers and increase transparency to the community.

As Ethereum continues to grow and evolve, the call for faster updates and improvements to its core protocol highlights the growing urgency for blockchain platforms to adapt to the rapidly changing landscape of decentralized technologies. With a clear focus on scalability, security, and user experience, Paradigm’s suggestions may help Ethereum remain at the forefront of blockchain innovation.