Ethereum Decade: From World Computer to Financial Settlement Layer Transformation

On July 30, 2015, the Ethereum mainnet officially launched, marking the beginning of a new era in blockchain technology. With the birth of the first block, the grand vision of a "world computer" also came into being. Vitalik and the early developers' goal was not just to create an upgraded version of Bitcoin, but to build a global computing platform capable of running any decentralized application.

On this day ten years later, as we reflect on the development of Ethereum, we find that the actual evolution trajectory of this "world computer" differs significantly from the initial vision. It has not become the operating platform for various decentralized applications as expected; instead, it has gradually evolved into a settlement layer dominated by financial applications. DeFi protocols occupy the vast majority of network resources, with trillions of dollars in assets circulating here, while the once highly anticipated decentralized social, gaming, and storage applications have either disappeared or migrated to other public chains.

Is this narrative shift a compromise or an evolution? On the occasion of the tenth anniversary of the Ethereum mainnet, reflecting on its narrative changes is not only a story about Ethereum itself, but also a microcosm of how technological ideals seek footholds in the real world.

World Computer: The Golden Age of Idealism(2015-2017)

To understand the initial vision of Ethereum, we need to go back to the end of 2013. At that time, 19-year-old Vitalik, while traveling in Israel, came up with a revolutionary idea: what if the blockchain could not only transfer value but also run arbitrarily complex programs? This concept first expanded the blockchain from a dedicated value transfer tool to a general-purpose computing platform.

The early Ethereum community gathered a group of technological idealists who believed in "code is law." They were not just building a new technological platform, but were also trying to create an entirely new social paradigm - a digital utopia that operates completely under the rules of code, without the need for centralized authority.

This idealism is reflected in the early design of Ether. The Turing-complete virtual machine, Gas mechanism, and account model each embody the value orientation of "maximizing decentralization" and "maximizing universality" behind every technical choice.

However, ideals soon faced the test of reality. In June 2016, The DAO project was attacked by hackers, sparking intense debate within the community about the principle of "code is law." Although the final hard fork decision saved investors' funds, it also led to the first major split of Ethereum, exposing the inherent contradictions of technological idealism.

ICO Token Machine: Lost in the Bubble (2017-2020)

In 2017, the ICO boom completely changed the development trajectory of Ethereum. Originally designed as a "world computer" platform, it suddenly found that its biggest use was issuing tokens. This huge gap between reality and vision constituted the first major fracture in the Ethereum narrative.

The ICO frenzy is not just a celebration of prices, but also a distortion of understanding. In the eyes of investors, Ethereum is no longer a revolutionary computing paradigm, but a simple printing machine. This simplification occurs not only at the technical level, but also affects the development direction of the entire ecosystem.

The bear market of 2018 not only brought about a collapse in prices but also a collapse in narratives. Ethereum must readdress a fundamental question: If it is not a world computer, then what exactly are you? In this process, a new narrative gradually takes shape: Ethereum is primarily a financial settlement layer, and only then may it become a general-purpose computing platform.

DeFi Victory: Finance Becomes Ethereum's Duty(2020-2021)

The DeFi Summer of 2020 marked a complete transformation of identity for Ethereum. If ICOs unexpectedly made Ethereum a token issuance platform, then the success of DeFi has made the entire ecosystem realize that finance may not be a compromise choice, but a natural mission.

The explosion of DeFi has created a powerful positive feedback loop, continuously reinforcing Ethereum's position as a financial infrastructure. Usage surges, developers gather, and the shift of discourse power is becoming more pronounced, with the voices of DeFi projects growing louder.

However, the success of DeFi has also exposed the performance bottlenecks of Ethereum. High Gas fees have forced the community to reassess the technical roadmap, elevating scaling solutions to the highest priority. This adjustment in technical choices is essentially a concrete manifestation of a shift in narrative.

The Rise of L2: Sovereignty Transfer and Parasites(2021-2023)

Faced with performance bottlenecks, the Ethereum community has undergone a painful cognitive shift. From "one chain to rule them all" to "a multi-layer collaborative ecosystem", Ether has begun to accept reality - a single blockchain cannot meet all demands, and the future belongs to specialized division of labor.

When Layer 2 solutions like Arbitrum and Optimism start to handle a large number of transactions, a fundamental question arises: if most activities occur on L2, then what exactly is the Ethereum mainnet? This question has sparked a series of in-depth discussions about data availability, decentralization, security, and more.

Interestingly, this debate has changed the definition of success. In the past, success meant that all activities took place on Ethereum. Now, even if activities occur elsewhere, as long as they ultimately require the security of Ethereum, it is considered a victory for the Ethereum ecosystem. This change in definition reflects a shift in thinking from "exclusivity" to "symbiosis."

Battle of Hundred Chains and "Legitimacy" Narrative Defense (2023-2024)

In 2023, the new generation of public chains is no longer trying to be a "better Ethereum", but rather starting to tell a completely different story. In the face of this narrative competition, the response from the Ethereum community has become increasingly defensive. Most discussions are not about "what we want to build", but rather "why we are better than other chains".

This defensive posture manifests itself in several ways. The technical roadmap increasingly responds to competitive pressures rather than an intrinsic vision, and community discussions are filled with criticism of other chains rather than self-reflection. More seriously, this defensive mentality is starting to affect the innovative vitality of the ecosystem.

Narrative Reconstruction and Future Outlook

In 2024, RWA( Real World Assets) became a new hotspot, providing an opportunity for Ethereum to reconstruct its narrative. From "changing finance" to "connecting reality", Ethereum aims to tell a more pragmatic story that is closer to the mainstream world.

This narrative shift reflects an evolution from idealism to pragmatism. In the past, communities were always searching for grand narratives that could define Ether; now, more and more people are beginning to accept a reality: perhaps there is no single answer at all.

From the world computer to the financial settlement layer, and then to the bridge of real-world assets, Ethereum's ten-year journey showcases how technological ideals seek a foothold in reality. The gains and losses, advances and retreats, persistence and compromises during this process not only define Ethereum but also shape the development trajectory of the entire crypto industry.

In the future, what truly brings Ethereum to billions of users may not just be what it can do, but what the real world chooses to do with it. From vision to reality, from promise to delivery, this may be the ultimate direction of the evolution of the Ethereum narrative.