Ethereum's Strategic Vision: Embracing The 'World Computer' Concept

Ethereum's Pivotal Moment: The Need for a Grand Vision

Ethereum stands at a crucial crossroads, necessitating a clear and ambitious vision to steer its future development. Drawing analogies to Yuval Noah Harari's acclaimed work, Sapiens, it posits that just as humanity has thrived by unifying around shared abstract ideas, Ethereum too requires a compelling "why" that inspires its builders and users. Such a unifying concept is essential for fostering collaboration and propelling growth within the ecosystem.

Historical Advantages of Ethereum

Ethereum’s success has been significantly shaped by several historical advantages:

• First-Mover Status: As the pioneers of smart contracts, Ethereum positioned itself early, capturing the interest of developers and investors.
• Smaller Ecosystem: Initially, a more compact ecosystem facilitated rapid development and iteration, allowing Ethereum to adapt quickly.
• Unified Community Goals: Short-term objectives, like the Merge, strengthened community ties, fostering a sense of belonging among developers and users.

The Risks of Fragmentation

Despite its success, Ethereum now finds itself in a precarious position. Valued at over $450 billion, the ecosystem comprises numerous teams, each motivated by their own incentives. This diversification, while indicative of growth, also poses a threat: the potential for fragmentation. If unity is not prioritized, Ethereum risks slowing innovation and losing its appeal to users who may seek alternatives.

The Shift to a Rollup-Centric Roadmap

The recent transition towards a rollup-centric strategy complicates Ethereum’s landscape. On one hand, the move has led to an influx of developers focusing on rollup applications, potentially preserving Ethereum’s influence. Conversely, there are concerns that rollups may siphon off Maximal Extractable Value (MEV) and revenue intended for Ethereum’s base layer.

Long-Term Value Dynamics

Even though there is potential for value to be funneled back to Ethereum through cross-chain MEV and hotspot congestion fees, the disappearance of congestion fees in a fully migrated Layer 2 landscape challenges the sustainability of this model. Currently, external liquidity providers and bridges are reaping the benefits, rather than Ethereum itself, complicating the narrative surrounding monetary value - especially as Bitcoin increasingly captures institutional and national attention.

A Unified Vision: The World Computer

In light of these challenges, the article advocates for a grand vision to rally consensus: the concept of the "World Computer." This vision positions Ethereum's Layer 1 not only as a hub for native applications but also as a desirable platform for rollups, thereby maintaining application presence and evolution on Layer 1.

Benefits of the World Computer Concept

• Ensures that applications remain on Layer 1, preserving value for Ethereum.
• Facilitates capture of cross-chain MEV by Ethereum, rather than allowing it to flow to external entities.
• Reinforces Ethereum's position as a core asset, with continued appreciation through gas fees from applications and Layer 2 activity.

By promoting this all-encompassing guiding goal, Ethereum can not only retain its developers but also maintain the cohesion necessary for its ecosystem to thrive amidst rapid changes in the blockchain landscape.