Insights from Hsiao-Wei on Ethereum’s Evolution
In a recent discussion, Hsiao-Wei, the Co-Executive Director of the Ethereum Foundation, provided insights into the ongoing evolution of Ethereum, particularly in light of the successful implementation of The Merge. This significant upgrade marked Ethereum’s shift from a Proof of Work (PoW) system to a Proof of Stake (PoS) model, a complex transition likened to changing an airplane’s engine while in flight. Hsiao-Wei remarked that the main obstacles were less about technology and more about “integrating people,” which involves the coordination of developers, clients, and various stakeholders within the ecosystem.
Structural Reorganization at the Ethereum Foundation
Moreover, the Ethereum Foundation is experiencing notable reorganization aimed at enhancing functional differentiation and specialization. The foundation has divided itself into three main business units, with some responsibilities outsourced to entities like Etherealize, which seeks to bridge Ethereum with traditional finance and Wall Street. This structural shift signifies the foundation’s gradual move toward a more decentralized governance framework.
Financial Strategies and Resource Management
Financially, the Ethereum Foundation is broadening its approach to resource management, moving beyond merely selling ETH. The exploration into lending, staking, and tokenizing assets demonstrates a more sophisticated approach to managing finances. Hsiao-Wei explained that a significant portion, approximately 75%, of the foundation’s expenditures necessitate fiat currency, thus underscoring the continued necessity of conducting coin sales, even amidst challenging market conditions.
Future Perspectives and Community Empowerment
Interestingly, Hsiao-Wei suggested that as the ecosystem matures, the Ethereum Foundation could potentially play a more diminished role.
If a community organization arises that can take over EF’s functions, we might reduce our scale.
This statement indicates a willingness to share power, a stark contrast to the tendencies observed in many blockchain initiatives where founders strive to maintain control.
Emerging Growth Areas for Ethereum
Looking ahead, Hsiao-Wei shared her optimism regarding various application domains that appear poised for growth, including identity solutions, social design, and mini-program ecosystems. These areas align with the overarching movement of Web3 as it increasingly finds its way into everyday applications, reflecting a broadening horizon for Ethereum and its community.
