Crypto Assets Entering "Adolescence"

The Crypto Assets industry is gradually maturing. Ethereum co-founder Vitalik Buterin recently shared his views on the current state of the industry at a conference. He believes that Crypto Assets have entered the "teenage" stage, but there is still room for improvement in terms of practicality. The high transaction fees and complex user interfaces in the past were major barriers, but the situation is now improving.

Breakthroughs in Ethereum Layer 2 Solutions

Vitalik pointed out that the Ethereum network once faced serious congestion issues, causing transaction fees to soar above 200 dollars. However, the emergence of Layer 2 solutions has completely changed this situation. These second-layer networks have successfully reduced transaction fees to below 0.1 dollars, greatly enhancing the usability and scalability of Ethereum.

Although some question whether Layer 2 may weaken the Ethereum mainnet, Vitalik believes that low transaction fees are a crucial milestone for the entire ecosystem. This not only addresses a major barrier to mainstream adoption but also enhances the security of transactions, making it affordable for ordinary users.

Balancing Decentralization and Mainstream Needs

In addition to reducing costs, Ethereum has also made significant progress in improving transaction speeds. After the Merge, block generation time has been halved, and transaction confirmation time has been reduced to 5-15 seconds, with Layer 2 networks even achieving around 1 second.

Vitalik emphasized that another challenge facing the Crypto Assets industry is how to maintain decentralization while meeting user needs. He particularly focused on the degree of decentralization of Layer 2 networks, believing that they should inherit the security of the Ethereum mainnet. To this end, he proposed specific decentralization standards, hoping that starting from 2025, only Layer 2 networks that reach a certain level of decentralization will be recognized.

The User Experience Revolution of Ethereum

Vitalik also discussed the advancements in account abstraction technology, which is expected to bring about a "user experience revolution." He pointed out that the mainstream society's resistance to Crypto Assets is not due to technical limitations, but rather issues with the user experience. Blockchain technology already has the potential to empower the internet with new capabilities, creating robust and lasting digital structures.

Now, users can create smart contract wallets and send transactions simply by proving control over a specific email address. This effectively brings the social recovery feature of Web2 into the Web3 world. Vitalik also emphasized the importance of enhancing wallet security, particularly against threats from centralized participants. He recommended using multi-signature smart wallets as a solution that balances security and convenience.

Future Development Directions of Ethereum

Looking to the future, Vitalik predicts that the Ethereum ecosystem will evolve in multiple directions, including social networks, payment systems, private mining pools, zero-knowledge proofs, and proof of humanity technologies. These developments will enhance practicality and usability while maintaining decentralization.

The Ethereum mainnet is also continuously undergoing technical improvements, including enhancing decentralization, shortening confirmation times, and increasing scalability. These advancements will lay the foundation for the long-term success of Ethereum.

As this "puberty" protocol matures, the future development of the Crypto Assets industry is anticipated. We will witness the rise of a decentralized yet practical ecosystem.