A New Era for the Ethereum Ecosystem: Unified, Efficient, and User-Friendly

Recently, there have been many opinions suggesting that Ethereum is facing challenges, such as the rapid development of other public chains, high transaction fees, and the potential decline of its ecosystem. However, is this really the case?

Looking back at 2017, the world of cryptocurrency attracted numerous users with its simplicity and speed. Today, Ethereum is reshaping this straightforward yet powerful user experience, taking it even further. By adopting a modular strategy, Ethereum is reconstructing its underlying architecture: the mainnet focuses on security and settlement, while Layer 2 solutions aim to enhance performance and optimize user experience.

This development trend is bringing exciting changes:

• The popularization of smart contract wallets
• Extremely low transaction fees on the Ethereum network
• A smooth on-chain application experience comparable to Web2

These advancements are being gradually realized. Innovations such as Rollup technology, the EIP-4844 proposal, and account abstraction are constructing a smooth, flexible, secure, and unified Ethereum ecosystem.

Ethereum Mainnet: The Cornerstone of Trust

Although high-frequency trading is gradually shifting to Layer 2 networks, some other public chains have made breakthroughs in specific areas, Ethereum mainnet still remains the core hub for capital, protocols, and developers.

1. Economic Dominance

On-chain data clearly demonstrates Ethereum's leading position. Its total locked value is approximately $62 billion, far exceeding other blockchain networks. The market value of stablecoins circulating on the Ethereum network exceeds $126 billion, making it the largest stablecoin issuance and trading platform in the world. Meanwhile, the Ethereum ecosystem is also a major contributor to the monthly trading volume of hundreds of billions of dollars on decentralized exchanges (DEX).

2. Strategic Shift

Ethereum is shifting from the vision of a "world computer" to the practical application of a "world ledger," aiming to become 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 a robust underlying architecture capable of supporting assets equivalent to the entire stock market of the UK, paving the way for "everything on-chain."

3. Institutional Participation

Traditional financial institutions are building the future financial system on Ethereum. From large banks' digital currency projects to asset management companies' on-chain funds, and the blockchain initiatives of the world's largest asset management companies, Wall Street is actively embracing Ethereum. With the implementation of regulatory frameworks such as the EU's crypto market regulation, barriers for the large-scale entry of compliant funds have been cleared.

Layer2: The Engine of Growth

The Ethereum scaling solution has transitioned from theory to reality, and a new division of labor is forming in the blockchain world:

1. Transaction costs have been significantly reduced.

The daily transaction volume of mainstream Layer 2 networks has far exceeded that of the mainnet, with the key being that transaction costs have decreased by 10 to 100 times. This has made "free trading" a possibility rather than just a commercial vision. As more financial service providers join businesses such as tokenized stocks, Layer 2 networks will usher in a wave of higher frequency and more diversified transactions.

2. Dencun Upgrade: Layer2 Exclusive Highway

The Dencun upgrade introduced "Blob"—a temporary data space designed for Layer2. It is independent of the expensive permanent storage on the mainnet, drastically reducing the data publishing costs for Layer2 by 100-200 times, which is a key part of the scalability revolution. Future technological upgrades will further expand this data channel.

Account Abstraction: A Revolution in User Experience

If Layer 2 solves the "high cost" problem, then account abstraction aims to address the "usability" issue. This is a key step for Web3 to welcome the next billion users.

Account abstraction aims to transform user wallets into programmable "smart accounts," bringing a whole new user experience:

1. Say goodbye to Gas fee troubles

In the future, when using decentralized applications, users will no longer need to worry about Gas fees and purchasing Ether. Through the Paymaster mechanism, applications can pay Gas fees on behalf of users, or users can pay directly with stablecoins.

2. Simplified Account Recovery

Users will no longer need to remember complex mnemonic phrases. Account recovery will become simple and secure through social recovery (verified by friends and family) or email recovery (using zero-knowledge proof technology).

3. Smooth login and payment experience

• Passkey: Users can directly authorize transactions using biometric recognition, and the complex concepts of private keys and signatures will be hidden.
• Session Key: In gaming or high-frequency operation scenarios, users only need to authorize once to operate smoothly within a specified time, without being interrupted by frequent signatures.

Interoperability: Connecting On-Chain Islands

After addressing the issues of "high costs" and "difficulty of use," the final challenge faced by the Ethereum ecosystem is fragmentation. Assets and identities are dispersed across different Layer 2 networks, and the cross-chain experience remains complex and slow.

Interoperability technology is becoming key to connecting these islands and building a unified ecosystem:

• Intents: Users only need to express their final goals, and the system will automatically calculate and execute the optimal path, making the entire process seamless for the user.

• Shared Sorter: Ensures that complex cross-chain transactions either all succeed or all fail, eliminating the risk of asset loss during the cross-chain process.

• Cross-chain session keys: Allow applications to automatically perform tasks across multiple networks, achieving more efficient asset management.

Towards a Unified Ethereum Ecosystem

The unified Ethereum ecosystem is no longer a distant future; it is gradually becoming a reality. The mainnet ensures trust, Layer 2 provides performance, account abstraction simplifies access, and interoperability technologies seamlessly connect all of this.

In this new paradigm, Web3 wallets will play a more important role, not just as simple asset management tools, but as smart gateways into a unified ecosystem, assistants for managing programmable accounts, and reliable guides for obtaining the best experience in a 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 new era of the Ethereum ecosystem will bring users an unparalleled experience and opportunities.