This report discusses the progress Ethereum has made in addressing the four fundamental challenges in the cryptocurrency field: scalability, decentralization, energy consumption, and applicability across diverse scenarios. It highlights Ethereum’s achievements in these areas, such as the successful operation of the Arbitrum One mainnet and the transition to Proof of Stake (PoS), and its growing applicability in various real-world scenarios.
Ethereum’s Scalability Progress
- Arbitrum One Mainnet: The successful operation of the Arbitrum One mainnet for two years validates Rollup as an effective method for scaling blockchain networks.
- Transaction Speed: Ethereum’s transactions per second (TPS) has increased to 100, and this figure could further increase with the upcoming Cancun upgrade.
- Transaction Security: Ethereum has improved transaction security by strategically distributing transaction security requirements across different layers.
- Reduced Centralization: Ethereum has progressively mitigated its centralization challenge through pragmatic business-oriented approaches.
- Proof of Stake (PoS): Ethereum’s transition to PoS has led to a thriving market that attracts developers and fosters competition among mining pools.
- Distribution of Holdings: Ethereum’s expansive network of 240 million addresses with holdings is unparalleled, indicating a high level of decentralization.
Energy Consumption and PoS
- Shift to PoS: Ethereum’s transition to PoS has been in line with the industry’s consensus towards minimizing energy usage.
- Resilience of PoS: The prolonged decentralized operation of PoS Ethereum has fortified the belief in the viability of PoS.
Applicability Across Diverse Scenarios
- Diverse Applications: Ethereum’s assets have proven indispensable for cross-border trade and serve as crucial payment and settlement tools in numerous trade scenarios.
- Integration with Real-World Assets: 2023 marked the introduction of stablecoins backed by government bonds, offering direct investment in US government bonds via the blockchain.
- Investigate the Potential of Rollup: Given the success of the Arbitrum One mainnet, there is potential in exploring the use of Rollup for scaling other blockchain networks.
- Consider the Benefits of PoS: Ethereum’s successful transition to PoS suggests that other cryptocurrencies could also benefit from adopting PoS to achieve decentralization and reduce energy consumption.
- Explore Ethereum’s Applicability: The diverse applications of Ethereum indicate opportunities for integrating blockchain technology into various aspects of our lives.