Why did Ethereum surge last night?
Ethereum is well-known in the world of digital currency and blockchain. Its journey has been like the Long March, full of challenges and continuous changes, with an influence that has swept across the globe.
Back in the day, when Ethereum 1.0 first started, the community was as quiet as a newly opened shopping mall. But once the Nordic technology and innovative concepts were introduced, it immediately became popular, and users surged rapidly. However, problems arose; transaction processing was like cashiers in a mall overwhelmed by a large number of customers, unable to keep up. The proof of work (PoW) mining was energy-consuming and costly, and it also led to environmental protests.
Then came Ethereum 2.0, with the launch of the beacon chain in 2020, introducing the new “proof of stake (PoS)” model, like a mall transforming to earn interest through staking, becoming a benchmark for low carbon. In 2022, with a big bang, the era of mining came to an end. However, it still had shortcomings, as the transaction speed did not meet expectations, gas fees were still high during peak times, and the staking threshold was 32 ETH, which was out of reach for the average person. Its resistance to censorship was also weak, and some transactions had to rely on specific nodes.
There was a lot of skepticism in the community, and at this time, the proposal for Ethereum 3.0 emerged. Its core, the “Shard Chain,” is an upgraded version of the beacon chain, utilizing advanced technology from Istanbul. Transaction speeds are incredibly fast, block generation times are significantly shortened, and users no longer have to wait. In terms of costs, with network scalability optimized, gas fees plummeted, and retail trading costs dropped sharply. The staking threshold was lowered to 1 ETH, allowing more people to easily participate and share in the benefits. Its resistance to censorship has also improved, making transactions fairer. On the cutting edge of technology, it has also laid the groundwork for quantum security, embracing zero-knowledge proofs (SNARK), enhancing privacy and efficiency, while also being environmentally friendly.
With the Ethereum 3.0 upgrade, ordinary users benefit greatly. Transaction confirmations are faster, fund circulation is more efficient; wallet transaction fees have decreased, especially gas fees, making retail trading more cost-effective; the staking threshold has been lowered, allowing more people to participate in ecological construction and make money; privacy protection has also been strengthened, making transactions more secure.
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