L1 Networks to Become Part of Ethereum’s ‘Economic Zone’
April 27, 2026
L1 networks have the potential to become part of Ethereum’s ‘Economic Zone’, according to Friederike Ernst, the co-founder of Gnosis. This innovative concept aims to address the issue of liquidity fragmentation within the blockchain space. Ernst mentioned in an interview with Cointelegraph that several projects operating outside of Ethereum’s L2 solutions have expressed interest in joining the initiative.
The primary goal of the Economic Zone is to enable different networks to collaborate seamlessly as if they were all integrated into a single unified system. This approach will eliminate the need for duplicating protocols, which currently forces popular platforms like Aave and Maker to launch separate versions on each L2 network they participate in.
To be eligible to join the Economic Zone, a blockchain must meet specific criteria. These include having a clearly defined state transition function, generating cryptographic proofs for every block, and supporting the ability to synchronize reorganization with Ethereum. According to Ernst, ensuring synchronous security for shared transactions is crucial, making it the most challenging requirement for potential participants.
The facilitation of this process will be carried out by block builders who will be responsible for recognizing smart contracts from various networks and incorporating them seamlessly into a single block. This approach ensures that transactions are executed in an all-or-nothing manner, preventing liquidity from becoming fragmented across multiple small markets. Importantly, participation in the Economic Zone does not mandate the use of the Ethereum Virtual Machine (EVM), making it an appealing option even for private institutional networks. However, it is worth noting that blockchains can opt-out of the Economic Zone at any time if their strategic objectives change.
In a related development, the Ethereum Foundation recently introduced a roadmap aimed at safeguarding the network against potential threats from quantum computers. This proactive approach underscores the ongoing commitment of Ethereum developers to enhancing the platform’s security and resilience in the face of emerging technological challenges.
As the vision of the Economic Zone continues to evolve, it represents a significant step forward in fostering collaboration and interoperability among diverse blockchain networks. By providing a framework for seamless interaction and shared security protocols, this initiative has the potential to unlock new possibilities for innovation and growth within the broader blockchain ecosystem.
