Challenges and Opportunities of Ethereum

In this issue, we invited Dr. Zhou, the founder of EthStorage, and Lawrence, a researcher at Mint Ventures, to discuss the challenges currently faced by Ethereum and its future development prospects.

The Main Issues Facing Ethereum

1. Layer2 strategy failed to effectively feed back the value of Layer1.
2. The project progress is slow, and the upgrade cycle is too long.
3. The extreme pursuit of decentralization has impacted efficiency improvement.
4. The on-chain business activity is not as active as in the previous bull market.
5. There is a disconnect between the R&D team and the development team.

Ethereum's Response Measures

1. Refocus on Layer 1 scaling
2. Plan to achieve a 10-fold Layer1 expansion by the end of the year.
3. Restructure the organizational structure and lay off employees
4. Introduce new executive directors to strengthen project orientation.
5. Seek a more pragmatic balance between decentralization and execution efficiency.

Advantages of Ethereum

1. A large and active developer community
2. Still has advantages in DeFi and financial applications.
3. Brand influence and network effects remain strong.

Outlook

The two guests hold a cautiously optimistic attitude towards Ethereum. They believe that if Ethereum can be more pragmatic, improve decision-making and execution efficiency, and better balance ideals with reality, it is likely to regain market favor. However, they also point out that Ethereum needs to overcome historical burdens while adapting to changes in market demand while maintaining its original intention.

Investment Advice

Observing the following points may help in assessing the investment value of Ethereum:

1. Has Vitalik and the core team's attitude become more pragmatic and aggressive?
2. Is Ethereum willing to accept a certain degree of trial and error in the pursuit of perfection?
3. Is the interaction between Ethereum and various stakeholders more proactive?

Overall, Ethereum remains an asset worth关注, but investors need to closely monitor its future development trends.