Ethereum's Strategic Transformation: From "World Computer" to "World Ledger"

Many people view Vitalik Buterin's emphasis on Ethereum as the "world ledger" as a new strategic adjustment, but in reality, this shift began with the implementation of EIP-1559. The dominance of stablecoins on the Ethereum network at 50% further solidifies its position as a financial settlement layer. Let's delve into this transition:

EIP-1559: Redefining the 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. It establishes a new model for Ethereum that no longer relies on the gas consumption brought about by an increase in transaction volume to capture value.

Before this, all transactions (including DeFi, NFT, and GameFi, etc.) were concentrated on the mainnet, leading to a significant increase in ETH Gas consumption. Data shows that the average daily burned ETH in 2021 approached thousands. At that time, the Ethereum mainnet was severely congested, and Layer 2 had to join the Gas competition when submitting batch data verification on the mainnet, resulting in high and unpredictable costs.

EIP-1559 changed the game: with the introduction of a predictable Base fee mechanism, the batch submission costs of Layer2 on the mainnet became stable and controllable. This directly lowered the operational threshold for Layer2, allowing more Layer2 solutions to rely solely on Ethereum for final settlement.

On the surface, EIP-1559 provides convenience for Layer 2, but in reality, it profoundly changes the value capture logic of Ethereum: shifting from a "consumption-based growth" reliant on high-frequency trading on the mainnet to a "tax-based growth" dependent on Layer 2 settlement demand.

This transformation is similar to how banks handle daily operations in various regions, but large interbank settlements must be confirmed through the central bank system. The central bank does not directly serve ordinary users, but all banks need to "pay taxes" to the central bank and accept supervision. This is precisely a typical feature of the positioning of the "world ledger."

Stablecoins: Confirmation of the Market's Positioning of "World Ledger"

Data shows that the total market value of stablecoins worldwide has exceeded $250 billion, with Ethereum accounting for 50% of the share. This ratio has not decreased but rather increased after the implementation of EIP-1559. Why is Ethereum so attractive to capital? The answer is simple: unparalleled security premium.

Specifically, a certain stablecoin has settled $62.99 billion on Ethereum, while another mainstream stablecoin has $38.15 billion. In contrast, the total amount of stablecoins on other public chains is relatively small.

The reason stablecoin issuers choose Ethereum is not for transaction speed or cost, but for the unparalleled economic security provided by nearly a hundred billion dollars' worth of staked ETH. This is a crucial consideration for institutions managing hundreds of billions of dollars in assets.

The massive accumulation of stablecoin funds has formed a self-reinforcing growth flywheel for the Ethereum ecosystem: the more stablecoins there are → the deeper the liquidity → more DeFi protocols choose Ethereum → generating more demand for stablecoins → attracting more capital inflow.

From this perspective, the large-scale aggregation of stablecoins on Ethereum is actually the result of global liquidity voting with their feet, and a market confirmation of its positioning as a "world ledger."

Clarification of Ecological Strategic Positioning

As the Ethereum mainnet focuses on being a "central bank" level settlement layer, the strategic positioning of the entire Ethereum ecosystem becomes clearer: Layer 2 is responsible for high-frequency trading, while the Ethereum mainnet focuses on final settlement, with a clear and efficient division of labor. Every transaction that settles from Layer 2 back to the mainnet will continue to burn ETH, driving a deflationary effect.

However, real-world data shows that the prosperity of Layer2 has not contributed to deflation for the Ethereum mainnet as expected. On the contrary, the daily average burn rate of the mainnet has significantly decreased, while the transaction volume and profitability of Layer2 platforms have significantly increased.

This phenomenon has raised some concerns, but it does not affect Ethereum's established position as the "world ledger." The large accumulation of stablecoins, nearly a hundred billion dollars in security guarantees (28% of the supply staked), and the largest DeFi ecosystem globally all demonstrate that capital chooses the settlement authority of Ethereum rather than the trading prosperity of the Layer 2 ecosystem.

Conclusion

Vitalik Buterin emphasized that the positioning of the "world ledger" is more like an official confirmation of the established fact. The implementation of EIP-1559 marks Ethereum's transition from a "world computer" to a "world central bank."

If we believe that the future dividends of cryptocurrency lie in the integration of on-chain DeFi infrastructure with traditional finance, then Ethereum's positioning as the "world central bank" is sufficient to solidify its status, and the prosperity of the Layer 2 ecosystem is not a decisive factor.

Of course, if you still believe that the rise of Ethereum must rely on the strength of the Layer 2 ecosystem, then this analysis may not suit your perspective.