Recently, the Ethereum circle has been quite lively: on one hand, Vitalik Buterin proposed a 'Five-Year Simplification Plan' to simplify Ethereum using the RISC-V new architecture and the 'Three-Slot Finality' model; on the other hand, the US has just approved the Ethereum spot ETF, and Wall Street is beginning to embrace ETH; meanwhile, various Layer 2 projects are battling it out, creating a bustling ecosystem. The narrative of pessimism towards Ethereum has also risen. However, in my view, these seemingly turbulent situations are precisely a necessary stage for Ethereum to move towards 'becoming stronger.'
Technological Reform: RISC-V and the Three-Slot Finality
Vitalik plans to make Ethereum as simple as Bitcoin. He proposed using a 'Three-Slot Finality' consensus model, eliminating the cumbersome epoch and committee mechanisms, allowing block finality to be achieved with just 3 slots; at the same time, replacing the EVM virtual machine with the RISC-V architecture, significantly improving execution efficiency and reducing complexity. To ensure a smooth transition, old contracts will continue to run on the on-chain EVM interpreter, similar to how Apple uses Rosetta to support legacy applications. This series of 'streamlining' operations demonstrates Vitalik's determination to simplify; I wholeheartedly support this move.
Layer 2 Chaos: Order in the Midst of Disorder
Meanwhile, a multitude of Layer 2 scaling solutions are flourishing, even becoming somewhat chaotic: Arbitrum and Optimism are rising and falling, zkSync and StarkNet are in a race, and even giants like Uniswap and Coinbase are entering the fray to create their own L2 solutions. As a result, funds and users have been dispersed, and the mainnet has at times felt like it is being 'disturbed by a mischievous child.' Pessimists assert that 'Ethereum is failing,' but the reality is quite the opposite: the more projects rooted in Ethereum for expansion, the more it underscores Ethereum's irreplaceable role as the underlying layer. After this chaotic reshuffling, the surviving quality Layer 2s will ultimately benefit the mainnet, bringing lower costs and more users to the Ethereum ecosystem. This brief period of chaos is one of the growing pains towards a more mature ecosystem.
ETF Benefits: Sweetness and Costs
Looking again at the positive market aspects—Ethereum's spot ETF has finally been approved. This marks the formal entry of traditional funds, giving Ethereum unprecedented recognition. However, there is no free lunch: to gain regulatory approval, sensitive designs such as staking rewards had to be removed from the ETF proposal. It is more convenient for investors to buy the ETF, but they do not enjoy the rewards brought by direct staking, which is one of the costs incurred. The entry of institutional funds also comes with concerns such as concentrated positions and strengthened regulation. Nevertheless, as long as the fundamental decentralization is not harmed, the mainstream recognition gained at this cost is still beneficial for Ethereum's long-term development.
Conclusion: Ethereum on the Eve of Transformation
Ultimately, whether it is self-innovation at the technical level or the turbulent winds of the market and ecosystem, they are all shaping a stronger Ethereum. Whenever a bear market arrives, there are always those who sing the blues for Ethereum, but it rises from the ashes time and again, growing stronger. This time, I still firmly stand by Vitalik's side. Let the bullets fly for a while; Ethereum will ultimately prove the naysayers wrong with its strength.