There has always been a prejudice against eths. I read @川general’s analysis. Now I feel that if it is treated as a branch, it is treated as a sub-position. Without the preference for heavy positions, this statement is indeed very strong. Unexpectedly, the valuation of 10.9 billion is only worth 20 million. The layout is too small, buy some for self-defense

More and more industry leaders are paying attention to whether $ETHS is L2?

Today I would like to share my views based on my understanding of ETHS after more than 4 months of experience. Everyone is welcome to add and put forward different opinions.

First of all, without spoiling everyone’s appetite, I can tell you clearly that ETHS is not L2! Right no!

In order to make it easier for everyone to understand, I try to avoid using professional terms.

What is L2?

- Give a vivid example to help you understand quickly

When the market is active, Binance often freezes. At this time, a big idea comes out. I have opened a new exchange. You can transfer your assets to Binance at any time, and my handling fees are even lower. On the one hand, the exchange attracts new users through airdrops of platform coins, and on the other hand, it gives platform coins to well-known project parties so that the project parties can attract users for them. As a result, many users rush into L2 after seeing lower handling fees and higher project annualization. Even buy L2 tokens.

-Why does L2 appear?

L2 is a last resort solution created to solve Ethereum’s congestion and high gas.

-How to implement L2?

Copy Ethereum, paste Ethereum, change the logo in the block explorer, and change the fields. Open a cross-chain bridge. Currently, all L2s have a small number of people or a small number of organizations that have actual control over the data. All L2 data is offline data, non-mainnet data

-Why are everyone so keen on publishing L2?

Because it’s so profitable

While endorsing the institution, it also gives low-priced bargaining chips to the institution=》Hype publicity=》Airdrop is expected to attract wooly investors to brush up data=》Refinancing with high data=》Direct large price or interest binding to big exchanges=》The myth of getting rich through airdrop creates a lot of popularity and goodwill =》Second-level users are taking orders one after another=》A large amount of subsidies are given to famous brand projects to attract more users=》The shipping road is long and good, but the bad is bad=》The shipment is finished or there is almost no popularity, and the soft road is gone=》Continue to release new L2/public chains

-Why is everyone saying L2 is good?

Because those who have a voice in the market are the beneficiaries. Can we not say that the institution only sold 30% of its low-priced chips? Wool Studio has spent a lot of money and still expects several L2s to send airdrops, can you not say it?How can you say that the exchange is either an early investment or a token? How can a famous brand project owner say it’s not good if they receive subsidies?

What you are playing with L2 is not Ethereum. It has almost nothing to do with Ethereum. If the boss of L2 runs away, the Ethereum main network will not lose your money and it will continue to operate normally.

-Since ETHS is not L2, why the overwhelming publicity?

First of all, it must be stated that ETHS is not equal to L2, but it can achieve low network fees like L2, so it will be compared with L2 in publicity.

-How can ETHS achieve extremely low gas fees on the main network?

1. Extensive use of CALLDATA instead of smart contracts can save a lot of GAS

2. Part of the ESC-VM operation process is run off-chain, and the results are transmitted to the chain and have technology to verify the accuracy of the results.

At present, eths is in an extremely early stage of development. The test network has been launched and the main network has been launched. There may be new problems and troubles, and the market is always willing to take action only after the leader endorses it or sees the product. This is also the reason why the market value of eths is extremely low. In addition, ethscriptions can also create permanently decentralized domain names that do not require renewal, decentralize the creation of NFT on the chain with low gas, and issue assets in a decentralized manner.

Are there any risks? Of course,

The biggest risk for early-stage agreements is that no one cares about them and they eventually become zero. But you might as well calculate the odds.

To give you a comparison, eths, as the first token protocol of ethscriptions, is like ordi to uordinals, which can achieve ARB (total market value of 9.6 billion US dollars) + ENS (total market value of 800 million US dollars) + bayc (500 million US dollars) = 10.9 billion U.S. dollars, so what is the market value of eths that can achieve the above functions in a decentralized manner? It is 20 million U.S. dollars. It’s only 1/500 of arb’s market capitalization.

Finally, let’s talk about what is decentralization?

Does blockchain mean decentralization? Of course not. If I post a chain, I alone have the authority to issue, freeze, and transfer anyone’s assets. Is this decentralization? of course not! This is centralization! So if I increase the number of controllers to 2, it means it is decentralized? How about adding it to 10? Still centralized! So what exactly is decentralization? If your assets are placed there, no one can freeze or transfer your assets! Biden can't touch your assets even if he wants to! This is decentralization! What is the ultimate goal of investment? The safety of principal. The safest principal in the world is Bitcoin. This is also the core value of Bitcoin!Coupled with the fact that Bitcoin cannot be issued, this is simply the most wonderful thing on earth!

In fact, I don’t love Ethereum, I only love Bitcoin, but that doesn’t mean everything on Ethereum is bearish. If you look at the declining property market, whether you want to buy a fully paid house in a small county town for 100 yuan now depends on the cost-effectiveness of the investment.

In 2017, ICO required a large amount of eth. In 20 years, defi required a large amount of eth and locked up a large amount. In 2023, even POW was changed to POS. The eth pledged by POS alone has exceeded 22%. The risk level has once again increased. What level can be achieved next time? Can the huge demand create a crazy bubble in Ethereum? Perhaps the best economic model is no economic model!

---------- As non-professional technical personnel, if there are any errors or omissions related to technical issues, please correct them and we will check and modify them in time.