A New Era for the Ethereum Ecosystem: Unified, Smooth, Open

Recently, discussions about the future of Ethereum have not cooled down. Some believe that other public chains may surpass Ethereum, while others are concerned that the Ethereum ecosystem is in decline. However, the reality may be quite different from these viewpoints.

Looking back at 2017, the world of cryptocurrency left a simple and straightforward impression: fast transactions, low fees, and ease of operation. Today, Ethereum is recreating and surpassing this user experience. Through a modular strategy, Ethereum is reshaping its underlying architecture: the mainnet focuses on security and settlement, while Layer 2 is responsible for enhancing performance and optimizing the experience.

This evolution is bringing about a series of exciting changes:

• The popularity of smart contract wallets
• Very low transfer fees on Ethereum
• Significant improvement in on-chain application experience

These advancements are building a smooth, flexible, secure, and unified Ethereum ecosystem.

Ethereum Mainnet: The Cornerstone of Trust

Despite high-frequency trading migrating to Layer 2 and certain public chains gaining market share in stablecoins, the Ethereum mainnet remains the core hub for capital, protocols, and developers.

1. Economic Dominance

Data shows that the total locked value of Ethereum is approximately 62 billion dollars, far exceeding other blockchains. Its stablecoin market cap exceeds 126 billion dollars, making it the largest stablecoin issuance and circulation network in the world. Moreover, the Ethereum ecosystem is a major contributor to the monthly trading volume of hundreds of billions of dollars in decentralized exchanges (DEX).

2. Strategic Shift

Ethereum is shifting from the vision of a "world computer" to a "world ledger," focusing on becoming the most neutral and secure settlement layer for global finance and digital assets. The "trillion-dollar security" plan proposed by the Ethereum Foundation aims to build it into a solid foundation that can support massive assets.

3. Institutional Participation

Traditional financial institutions are building the future on Ethereum. From digital currency projects of certain large banks to on-chain funds from well-known asset management companies, Wall Street is actively participating in the Ethereum ecosystem. The gradual improvement of the regulatory framework has also paved the way for the large-scale entry of compliant funds.

Layer2: The Engine of Growth

The expansion of Ether has shifted from theory to reality, creating a new division of labor pattern:

1. Significant reduction in costs, trading volume surpasses the mainnet

The total daily transaction volume of mainstream Layer 2 solutions has far exceeded that of the mainnet, with the key being a cost reduction of 10 to even 100 times. This has turned "free trading" from a vision into a possibility. As more financial service providers enter the tokenized stock space, Layer 2 will usher in a wave of higher frequency and more diverse trading.

2. Dencun Upgrade: Opening Exclusive Channels for Layer2

The Dencun upgrade introduces "Blob" - a temporary data space designed for Layer 2. It is independent of the mainnet's permanent storage, drastically reducing the data publishing costs for Layer 2 by 100-200 times, which is a key part of the scaling revolution. Future technological upgrades will further optimize this data channel.

Account Abstraction: A Revolution in Experience

Account abstraction technology aims to solve the usability issues of Web3, which is key to welcoming the next wave of users. It transforms wallets into programmable "smart accounts," bringing the following changes:

1. Say goodbye to Gas fee worries

Users no longer need to worry about Gas and purchasing Ether. Through the Paymaster mechanism, applications can pay for Gas on behalf of users, and users can also pay directly with stablecoins.

2. Simplified Account Recovery

Recovering accounts through mechanisms such as social recovery or email recovery will become simple and secure.

3. Smooth login and payment experience

Passkey technology allows users to authorize transactions directly using biometric recognition. Session keys enable users to avoid frequent signing within a specific timeframe.

Interoperability: Connecting Islands

After addressing the issues of cost and usability, the final challenge of the Ethereum ecosystem is fragmentation. Interoperability technologies are connecting different Layer 2 "islands" to build a unified ecosystem:

• Intents: Users only need to express their ultimate goal, and the system will automatically plan and execute the optimal path.
• Shared Sequencer: Ensures that complex cross-chain transactions either all succeed or all fail, enhancing security.
• Cross-chain session keys: Allow applications to automatically perform tasks across multiple chains, achieving highly automated asset management.

Embracing the Unified Ethereum Era

A unified Ethereum ecosystem is taking shape: the mainnet ensures trust, Layer 2 provides performance, account abstraction optimizes entry, and interoperability technology seamlessly connects various components. In this new paradigm, Web3 wallets will become the smart entry point into the unified ecosystem, serving as assistants for managing programmable accounts and guides in the multi-chain world.

We are standing at the starting point of a brand new value internet - it is unified, open, user-friendly, and unprecedented. This ecosystem is reshaping the future of blockchain, creating unparalleled opportunities for users and developers.