What is the biggest challenge Ethereum is currently facing?

Ethereum: The transformation of the giant wheel and the new challenge of V God

Ethereum has become the focus of the market in the past week, and the reason is not a single one. Vitalik Buterin (V God) frankly confessed the difficulties faced by Ethereum in AMA, which caused heated discussion; at the same time, Bybit's huge ETH theft incident once again pushed Ethereum to the forefront. These two seemingly unrelated events jointly reveal the deep challenges facing Ethereum.

People often joke about its price performance by saying "I bought ETH and paid off all the debts I owe in my previous life", which reflects the market's concerns about the current development status of Ethereum, which is in sharp contrast with projects such as Solana. So, what exactly happened to Ethereum?

In the communication with members of the core Ethereum community, some views believe that the Ethereum Foundation is inefficient and does nothing except selling ETH; the rise of Layer2 diverted the value of Ethereum; and a new market narrative did not appear on Ethereum. These statements seem reasonable, but they may be just appearances.

As The Innovator's Dilemma stated, excellent companies often decline because they are unable to cope with disruptive innovation. The challenges facing Ethereum now are the embodiment of this classic case.

Ethereum has gone through nearly a decade of history, and it is not a short time in the rapidly developing Web3 field. Although V God denied that Ethereum was a company in a recent interview and emphasized its decentralized attributes, Ethereum's development trajectory might be very different without corporate operations. In the blockchain field, the only thing that truly achieves de-corporation is Bitcoin.

Therefore, the challenge of Ethereum is: innovation is blocked and management (Ethereum Foundation) is inefficient. In the interview, V God also mentioned the need for new stories (i.e. innovation) and reforms within the foundation (improving efficiency). This shows that even though V God denies that Ethereum is an enterprise, its response method has to adopt an enterprise management model.

New challenges follow: Is V God ready to become a manager? He needs to transform from a technologist to an atypical "entrepreneur" and re-examine and balance the concept of "decentralization".

Reading through the interview with God V, I was curious whether he was experiencing a huge psychological transformation? After all, it is not just Ethereum that needs to be reshaped, but also himself. Perhaps changing his avatar a month ago has already indicated his determination.

Finally, in a word, whether Ethereum can overcome challenges and future developments: ETH still has a market value of US$330 billion and is still the second largest cryptocurrency project.

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