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The Ethereum Economic Zone promises to stitch fragmented rollups back into a single system, but a similar model struggled to gain traction on Cosmos.Ethereum builders are pushing a new way to unify the ecosystem after years of fragmentation caused by the very networks designed to scale it.
) remaining the gas token and settlement layer. It also introduces a model where smart contracts can interact across mainnet and EEZ rollups with atomic execution.. After pushing activity to layer-2 networks, much of the economic value shifted away from the base layer. Rollups rely on Ethereum for security and final settlement, but in practice, end up capturing user fees and revenue, a relationship some critics have Similar attempts to unify fragmented blockchain ecosystems have been tried before, with mixed results.near $5,000 last August, but it was only a marginal jump from its previous peak. It couldn’t keep up with Bitcoin , describing it as a “loose alliance of chains that opt in to shared security.” The EEZ would shift that structure closer to a federated economic union of chains — similar to the US and its 50 states — without requiring a hard fork.The proposal mainly impacts three groups. First, for Ethereum, it could improve liquidity circulation across the ecosystem by reducing reliance on bridges, which remain a major attack surface as funds are locked in contracts and exposed to exploits. Second, for users, EEZ aims to enable seamless movement between Ethereum and its rollups by reducing friction and cost of moving assets. Users can do so without the need for constant bridging. Finally, for protocols, it removes the need to manage bridges, wrapped assets and chain-specific deployments, simplifying operations across the ecosystem,through a hub-and-spoke model built on “Interchain Security.” Chains could lease security from the Cosmos Hub in exchange for sharing fees and staking rewards with ATOM holders.“Most things fail and so the ecosystem inevitably littered with corpses of failed projects and this inevitably leads to lack of confidence in the project as a whole,” Manianhow that experience applies to Ethereum’s proposed economic zone. Manian responded that many projects building within the EEZ framework are also likely to “fail.” “The Atom experience is that the broader public will interpret this as a failure of EEZ,” Manian added.Cosmos is not quite Ethereum. It’s a framework and a networking layer, and the Cosmos ecosystem is a network of sovereign L1 chains. Meanwhile, Ethereum is a layer-1 blockchain that has a clear hierarchy. Ethereum rollups are structurally dependent on Ethereum for settlement and security, aligning their incentives with the base layer. Gnosis co-founder Martin Köppelmann pitched in to Feist and Manian’s discussion by pushing back at the comparison. He framed EEZ around synchronous composability and access to Ethereum’s state rather than shared security or revenue models. The tradeoff is that rollups must follow Ethereum’s occasional chain reorganizations, adding complexity, but Köppelmann described those events as infrequent and manageable compared to the benefits.EEZ gains traction as Ethereum rethinks its scaling strategy Ethereum’s rollup-centric roadmap was widely viewed as necessary when it was first introduced and did achieve its goal of easing the network’s congestion. That may have come at a cost. Some market watchers argued it blunted a key price rally opportunity during the last bull cycle. They also warn that Ether risks“The original vision of L2s and their role in Ethereum no longer makes sense, and we need a new path,” Buterin Though Ethereum’s pivot back toward scaling the base layer is recent, the EEZ has been a long time coming. An early version of the idea was described as an “Ethereum 3.0 vision” by Bankless co-founder Adams afterThe EEZ has gained widespread attention thanks to backing from the Ethereum Foundation and its development team, which includes Gnosis, known for building the Safe multisig wallet and early prediction market infrastructure. The EEZ has yet to reveal key details such as its technical architecture and performance benchmarks, but said these will be published in the coming weeks.Cointelegraph Features publishes long-form journalism, analysis, and narrative reporting produced by Cointelegraph’s in-house editorial team with subject-matter expertise. All articles are edited and reviewed by Cointelegraph editors in line with our editorial standards. Research or perspective in this article does not reflect the views of Cointelegraph as a company unless explicitly stated. Content published in Features does not constitute financial, legal, or investment advice. Readers should conduct their own research and consult qualified professionals where appropriate. Cointelegraph maintains full editorial independence. The selection, commissioning, and publication of Features and Magazine content are not influenced by advertisers, partners, or commercial relationships. This content is produced in accordance with Cointelegraph’s
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