This is perhaps one of the most interesting things I've read recently, as the market is too quiet and Ethereum's old efforts have almost hit a dead end.
- Previously due to overwhelming, cumbersome, and expensive issues,#ETH positioned itself as the center of the foundational layer, and handed over the scaling to Layer 2s, with the operating mechanism being that Layer 2s aggregate transactions and execute them on the base layer,$ETH , which helps reduce transaction fees by 99% and significantly increases speed.
- The issue of many L2s causing liquidity and user fragmentation, reducing the demand on the main chain has actually been a long-standing concern (I have talked a lot about L2 since its inception, and I do not invest in L2), as the old roadmap of ETH would eventually discard L2s to implement sharding chains, so in the future, very few L2s will survive and will then exist as a separate L1 EVM => But this demand has come sooner than expected as ETH has lost too many users and trust.
*So what is the solution now?
=> Vitalik proposed a new direction: simplifying Ethereum's L1 protocol to achieve a simplicity similar to Bitcoin (because Ethereum's complexity has led to high development costs, security risks, and isolation in research and development (R&D)).
SPECIFICALLY IN 6 PARTS IN 4 PHASES
1. Simplifying the Consensus Layer
3-slot finality: Replacing the Gasper mechanism with a new model consisting of around 200 lines of code, eliminating complex concepts like slots, epochs, and committee shuffling.
2. STARK-based aggregation: Applying STARK-based aggregation protocol, allowing anyone to become an aggregator without special trust, while improving peer-to-peer network architecture.
3. Simplifying the Execution Layer
Transitioning from EVM to RISC-V: Replacing the Ethereum Virtual Machine (EVM) with a RISC-V based virtual machine to improve zero-knowledge proof performance by 100 times, simplifying the virtual machine structure, and supporting more programming languages.
4. Removing precompiles: Reducing complexity by eliminating most of the optimized functions in EVM.
5. Backward compatibility strategy: Deploying EVM interpreters on the chain to ensure existing contracts continue to function during the transition.
6. Standardizing protocols
Unifying formats: Using a unique erasure code, serialization format (SSZ), and binary tree structure for both the consensus and execution layers to reduce complexity and increase efficiency.
At this point, it seems a bit confusing, right? I want to talk a bit about the importance.
- We must recognize that although ETH is at a disadvantage, BlackRock, Citigroup, and other organizations are bringing RWA encryption into practical stages and Ethereum remains the main platform (including stablecoins, T-Bills, ...).
- The amount of DeFi still remains overly short on ETH, whales still use ETH as a preferred platform and the money on it is still the backbone of the market.
- So with an Ethereum Foundation striving for reform, willing to listen, just having a few correct solutions accepted, then$ETH it can still grow in the near future.
- Vitalik's idea is quite futuristic and will take a while to implement, while this time is close to the Pectra and Fusaka Upgrades, we still do not know what major changes will occur next that will affect the market, but I still have faith in ETH.
- What are your opinions?
#steven_research
