Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Robinhood vs. Vitalik: Reasons Behind the Trading App Developing Its Own Layer 2 as Ethereum Founder Shows Diminished Interest
Centralized exchanges are advancing in the development of their own blockchain infrastructure, even as the wider Ethereum ecosystem contemplates its future.
Key points:
- The Robinhood Chain testnet has recorded four million transactions during its first week of operation, as stated by the investment platform’s CEO Vlad Tenev on X this Thursday.
- This chain, which is centered on tokenization and trading, emerges at a time when centralized exchanges are increasingly focused on developing their own blockchain infrastructure amidst ongoing discussions regarding the future of the broader Ethereum ecosystem.
- Vitalik Buterin, co-founder of Ethereum, announced that the historically established layer-2 rollup-centric strategy of the protocol “no longer makes sense,” noting that the scaling of Ethereum’s base layer is progressing more rapidly than anticipated.
Robinhood’s (HOOD) testnet has recorded four million transactions in its first week of operations, according to CEO Vlad Tenev on X this Thursday.
The Robinhood Chain, focusing on tokenization and trading, arrives at a moment when centralized exchanges are striving to create their own blockchain infrastructure while the broader Ethereum ecosystem contemplates its future.
STORY CONTINUES BELOWDon’t miss another story.Subscribe to the The Protocol Newsletter today. See all newslettersSign me up
Related Posts
“Developers are already constructing on our L2, designed for tokenized real-world assets and on-chain financial services,” Tenev mentioned.
Testnets provide a safe environment for developers to evaluate code and experimental features ahead of the mainnet launch. The two phases of a network’s development can be likened to a flight simulator and an actual commercial flight.
The Robinhood Chain’s testnet has emerged against the backdrop of a significant reassessment within the Ethereum community.
Earlier in the month, Ethereum co-founder Vitalik Buterin expressed that the protocol’s long-standing layer-2 (L2) rollup-focused roadmap “no longer makes sense,” contending that numerous rollups have not achieved full decentralization and that Ethereum’s base layer is scaling sooner than expected.
This philosophical shift has sparked discussions in the Ethereum community regarding what effective scaling and meaningful decentralization may resemble in 2026. However, while some within the developer community advocate for new frameworks, Tenev and other centralized entities seem to be reinforcing their commitment to proprietary chains and tokenized markets as a means to attract users and liquidity.
This divergence highlights an expanding gap in the trajectory of the crypto industry. While Ethereum’s core developers are reevaluating how scaling should progress on the base layer, major trading platforms are aiming to gain more control over the infrastructure. For exchanges, possessing the infrastructure could lead to enhanced user retention, new revenue opportunities, and increased influence over the development of tokenized markets.
Read more: Robinhood starts testing its own blockchain as crypto and tokenization push deepens
