Crypto Assets Enter a New Stage of Development

The co-founder of Ethereum recently gave a speech at a conference, discussing topics such as the usability of Crypto Assets, payment functions, and ecosystem security. He believes that Crypto Assets have moved beyond the initial stage into a "teenage" period, but there is still significant room for growth in practical applications. This is mainly due to the previously high transaction fees and the not-so-friendly user interface.

Progress of Layer 2 Networks and Advantages of Low Costs

The founder of Ethereum pointed out that during periods of network congestion in the past, Ethereum gas fees once exceeded $200. He himself paid over $800 for a single transaction fee to protect transaction privacy. This situation no longer exists today, thanks to the development of layer two networks. Layer two networks move some transactions from the mainnet to auxiliary blockchains, playing a key role in reducing mainnet costs and improving scalability.

Despite voices questioning whether the development of layer two networks might undermine the Ethereum mainnet, the low transaction fees of layer two networks are actually a significant milestone for the entire ecosystem, as they address the main barrier to large-scale applications. Currently, some layer two networks have successfully reduced fees to below $0.1, making transactions more secure and affordable for users.

Balancing Decentralization and Mainstream Demand

In addition to reducing transaction costs, Ethereum has also made progress in transaction speed. After the transition to the proof-of-stake mechanism, the average waiting time for the next block has been successfully reduced by half, making the mainnet transaction waiting time decrease to 5 to 15 seconds, while the transaction time on the layer two network has dropped to about 1 second.

The founder of Ethereum also mentioned that another common challenge facing the Crypto Assets industry is how to maintain decentralization while meeting demand. He believes that layer two networks should inherit the security of the layer one network they are based on. The current issue is that, although the Ethereum mainnet is decentralized, the layer two networks based on Ethereum may not be. In fact, it is difficult for layer two networks to achieve the same level of decentralization as layer one networks.

He stated that starting from 2025, he will only publicly acknowledge layer two networks that reach specific standards or higher stages in decentralization. These networks require 75% consensus from the council to overturn the proof system, and at least 26% of the council members should be independent of the network team. He believes this requirement is reasonable and necessary.

The User Experience Revolution and Future Development of Ethereum

The founder of Ethereum emphasized the advances in account abstraction technology and the importance of the "user experience revolution." He pointed out that the reasons mainstream society does not use Crypto Assets, such as "inefficiency," are not due to technical limitations. The blockchain has actually been empowering the internet with new capabilities, acting as "digital concrete" to create robust and lasting digital structures.

He mentioned that users can now create simple real accounts (smart contract wallets) that can only send transactions when they prove control over a specific email address. This essentially brings the social recovery feature from Web2 into the Web3 world.

Regarding wallet security, he commented on extreme self-sovereign wallets and traditional options that rely on third parties, believing that both approaches have inherent flaws. In contrast, he views multi-signature smart wallets as a more balanced solution, providing enhanced protection for user funds while maintaining a high level of privacy.

In addition, he mentioned the ongoing technical improvements to the Ethereum mainnet, such as enhancing decentralization, reducing confirmation times, and increasing scalability. These advancements will play a key role in the future development of Ethereum.

According to his predictions, the Ethereum ecosystem will develop towards social networks, payment systems, private mining pools, zero-knowledge, and human proof technologies, while also embodying decentralization and practicality.

This protocol, which is currently in its "puberty," is gradually maturing, and its future development is promising.