Vitalik Buterin Explores Using BCH and ETC as Short-Term Data Layers for Ethereum

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The future of blockchain scalability is evolving rapidly, and Ethereum co-founder Vitalik Buterin continues to lead the conversation with innovative proposals. In a recent post on the Ethereum Research blog, Buterin outlined a forward-thinking idea: leveraging existing blockchains like Bitcoin Cash (BCH) and Ethereum Classic (ETC) as temporary data layers for Ethereum while the long-term solution—ETH 2.0—matures.

This concept addresses one of Ethereum’s most pressing challenges: scalability. As decentralized applications grow in complexity and usage, the network faces increasing congestion and high transaction fees. Buterin’s proposal offers a pragmatic bridge toward a more scalable future.

The Scalability Challenge and ETH 2.0 Vision

Ethereum’s roadmap has long included a transition to ETH 2.0, a proof-of-stake system designed to support up to 10 MB per second of data throughput—far exceeding current blockchain capabilities. However, full implementation remains over a year away.

Until then, Ethereum developers must find ways to experiment with rollups, validity proofs, and data availability solutions without being constrained by high on-chain costs. This is where alternative blockchains come into play.

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Why BCH and ETC Are Viable Candidates

Buterin identified Bitcoin Cash (BCH) and Ethereum Classic (ETC) as two of the most promising candidates for short-term data layer integration. Both offer unique advantages that align with Ethereum’s research goals.

Bitcoin Cash: High Throughput, Low Fees

BCH stands out due to its:

Despite these strengths, BCH’s 10-minute block time introduces latency, which could delay data confirmation for time-sensitive applications.

Ethereum Classic: Faster Blocks, Greater Challenges

In contrast, ETC offers a much faster 14-second block time, enabling quicker data finality—ideal for real-time rollup validation or frequent state updates.

However, ETC comes with trade-offs:

Still, for certain use cases where speed outweighs volume, ETC presents a compelling alternative.

A Bridge Toward True Scalability

Using BCH or ETC as temporary data layers allows Ethereum researchers to:

This approach doesn’t replace ETH 2.0—it accelerates learning and iteration. By leveraging existing infrastructure, the Ethereum community can de-risk innovation and refine protocols before full deployment.

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Broader Implications for Blockchain Interoperability

Buterin’s proposal highlights a growing trend: cross-chain utility beyond asset transfers. Instead of competing in isolation, blockchains can serve complementary roles—BCH as a cheap data store, ETC as a fast validator chain, and Ethereum as the settlement layer.

This model promotes modular blockchain design, where each chain specializes in a specific function:

Such specialization could redefine how we think about blockchain architecture, moving away from monolithic designs toward interoperable, purpose-built systems.

Expert Insights: The Role of Cryptocurrencies in Digital Economies

Beyond technical developments, thought leaders are emphasizing the strategic role of digital assets in economic transformation.

Dr. Liu Changyong, PhD in Economics from Peking University and Director at Chongqing Technology and Business University’s Blockchain Economy Research Center, argues that cryptocurrencies should be prioritized for development before widespread application across industries.

He describes crypto assets as digitally native, secured by asymmetric cryptography, and offering key advantages:

According to Liu, crypto assets fulfill multiple economic functions:

Rather than rushing into enterprise use cases, he advocates focusing on maturing the foundational layer—digital money—first.

The Strategic Value of Libra and Global User Bases

Meanwhile, economist Zhang Rui, council member of China Market Society, analyzed Facebook’s Libra project (now Diem), highlighting its potential despite regulatory hurdles.

With 2.7 billion active users, Facebook possesses an unparalleled distribution network. Even if Libra never becomes legal tender, its ability to function as a global digital currency within closed ecosystems remains powerful.

Zhang notes that Libra’s design—backed by a basket of currencies and government bonds—gives it:

This creates vast value potential beyond any existing cryptocurrency. Moreover, platforms like Libra could open doors to digital finance and social services, similar to how Alipay and WeChat Pay transformed financial inclusion in China.

Early Days of Crypto Exchanges: The Winklevoss Story

The journey of cryptocurrency adoption hasn’t been easy—even for pioneers.

Cameron and Tyler Winklevoss, founders of the regulated Gemini exchange, recently revealed they bought their first Bitcoin from Mt. Gox, the now-defunct Japanese exchange.

Their experience underscores the early challenges:

It took them 18 months to secure a trust charter in New York—a testament to regulatory hurdles. Even today, finding banks willing to hold crypto-related funds remains difficult. As Cameron noted, even giants like Goldman Sachs rely on synthetic exposure rather than direct Bitcoin custody.

Yet the twins remain committed to building a compliant platform that attracts institutional investors, including macro hedge funds. They believe unregulated offshore exchanges will only survive temporarily in a maturing market.

👉 Learn how institutional adoption is transforming the crypto landscape.

Frequently Asked Questions (FAQ)

Q: What is a blockchain data layer?
A: A data layer stores transaction or state information temporarily so other systems can verify or process it later. It’s essential for scaling solutions like rollups.

Q: Why not build everything on Ethereum now?
A: High gas fees and limited throughput make frequent data posting expensive. Cheaper chains like BCH offer a testing ground.

Q: Is Ethereum abandoning its own scaling roadmap?
A: No. This is a short-term research strategy. ETH 2.0 remains the long-term solution with native scalability.

Q: Can BTC or ETC replace Ethereum?
A: Not directly. Each chain has different purposes—Ethereum focuses on smart contracts and settlement, while others may specialize in data or speed.

Q: How does this affect regular crypto users?
A: Faster innovation means better Layer 2 apps, lower fees, and improved UX down the line.

Q: Are there risks in relying on other blockchains?
A: Yes—centralization risks, lower security budgets, or community shifts could impact reliability. These are test environments, not permanent dependencies.

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