The Transformation Journey of Ethereum: From World Computer to World Ledger

The positioning of Ethereum from "world computer" to "world ledger" has not just begun recently; in fact, this transformation started with the implementation of EIP-1559. Today, stablecoins on Ethereum account for 50% of the global market share, further consolidating its position as a financial settlement layer. Let's delve into the process and significance of this transformation.

EIP-1559: Redefining Value Capture Mechanism

The core of EIP-1559 is not to reduce Gas fees, but to redefine the value capture mechanism of the Ethereum mainnet. This upgrade changes the traditional model of how Ethereum captures value through increased transaction volume and gas consumption.

Before EIP-1559, all transactions (including DeFi, NFT, and GameFi) were concentrated on the mainnet, leading to significant consumption of ETH and network congestion. Layer 2 solutions also had to participate in fierce Gas competition when submitting batch data validations, resulting in high and unpredictable costs.

EIP-1559 introduced a predictable base fee mechanism, making the batch submission costs of Layer 2 on the mainnet stable and controllable. This not only lowers the operational threshold for Layer 2 but also allows more Layer 2 projects to rely on Ethereum for final settlement.

This change has profoundly altered the value capture logic of Ethereum: shifting from a "consumption-based growth" model that relies on high-frequency trading on the mainnet to a "taxation-based growth" model that depends on Layer 2 settlement demand. Layer 2 now earns fees from users but must regularly submit batch data to the mainnet and burn ETH, creating a relationship similar to tribute.

This model is similar to the banking system, where banks in different regions handle daily operations, but large interbank settlements must be confirmed through the central bank system. Central banks do not directly serve regular users, but all banks need to "pay taxes" to them and accept regulation. This is precisely the positioning of the "world ledger."

Stablecoins: Market Recognition of Ethereum's Security

Currently, the total market value of stablecoins worldwide exceeds $250 billion, with Ethereum accounting for 50% of the share. This proportion has not decreased but rather increased after the implementation of EIP-1559, reflecting the market's high recognition of Ethereum's security.

The total supply of major stablecoins such as USDT and USDC on the Ethereum network far exceeds that of other blockchains. This concentration is not due to Ethereum's fast transaction speed or low costs, but stems from its irreplaceable security premium. Nearly one hundred billion dollars worth of staked ETH provides extremely high economic security, making the cost of attacking Ethereum exceptionally high, which is crucial for institutions managing large amounts of assets.

The large-scale accumulation of stablecoins on Ethereum has formed a self-reinforcing growth cycle: the more stablecoins there are, the deeper the liquidity, attracting more DeFi protocols to choose Ethereum, which in turn generates more demand for stablecoins and attracts more capital inflows. This phenomenon is, in fact, the market recognition of Ethereum's status as the world's ledger by global liquidity.

Ecological Division of Labor and Future Challenges

As the Ethereum mainnet focuses on becoming a "central bank-level" settlement layer, the strategic positioning of the entire Ethereum ecosystem has become clearer: Layer 2 solutions are responsible for high-frequency trading, while the Ethereum mainnet focuses on final settlement, forming a clear and efficient division of labor.

However, this division of labor has also brought new challenges. As users increasingly turn to Layer 2, the daily ETH burn rate on the Ethereum mainnet has significantly decreased, while Layer 2 platforms have thus gained considerable profits. This situation has raised concerns about whether Layer 2 has become a "vampire," which could affect Ethereum's long-term value capture ability.

Nevertheless, Ethereum's status as the world's ledger has not been shaken. The substantial accumulation of stablecoins, the security provided by large-scale staking, and the largest DeFi ecosystem globally all demonstrate that the capital market values Ethereum for its authority in settlement, rather than the prosperity of its Layer 2 ecosystem.

Conclusion

The transition of Ethereum from a "world computer" to a "world ledger" is a gradual process, and the implementation of EIP-1559 marks the arrival of this turning point. If the future direction of cryptocurrency development is the integration of on-chain DeFi infrastructure with traditional finance, then Ethereum's positioning as the "world central bank" will help solidify its leadership in the industry. Regardless of the development of the Layer 2 ecosystem, the core value of Ethereum as the global financial settlement layer will remain unchanged.