What is the next step for Ethereum?

2025-08-17

As one of the products of blockchain technology, Ethereum's future development has always been highly anticipated. Ethereum has established its industry position through smart contracts, decentralized applications (DApps), and decentralized finance (DeFi). With the completion of "The Merge" in 2022, Ethereum officially transitioned from Proof of Work (PoW) to Proof of Stake (PoS), taking an important step in the Ethereum 2.0 plan. According to Ethereum’s official information*, Ethereum's next goal is to further enhance scalability, reduce transaction costs, and continue to promote the development of a decentralized ecosystem.

  1. Scalability: Introducing sharding technology

The scalability issue of Ethereum has always been a bottleneck limiting its widespread application, especially during network peak periods when transaction fees (Gas Fees) are often prohibitively high. In the future, Ethereum plans to improve network performance through sharding (Sharding) technology.

  • The role of sharding : sharding divides the Ethereum network into multiple parallel sharding chains, each responsible for processing a portion of transactions and smart contracts. This design will significantly improve the transaction throughput of Ethereum, with thousands or even tens of thousands of transactions expected to be processed per second.
  • Sharding combined with PoS : Sharding complements Proof of Stake to make the network more efficient and energy efficient while remaining decentralized and secure.
  1. Reduce Gas Costs

The high gas cost of Ethereum has always been a pain point for users and developers. Through future scalability upgrades and the promotion of Layer 2 solutions (such as Optimism and Arbitrum), Ethereum will further reduce gas costs and make it more suitable for large-scale application scenarios.

  1. Driving the development of Layer 2 solutions

Layer 2 expansion plan is one of the important strategies for the future of Ethereum. Layer 2 greatly reduces network burden by processing a large number of transactions outside the Ethereum main chain and submitting the results for verification on the main chain.

  • Rollups technologies such as ZK-Rollups and Optimistic Rollups have gradually matured and will become an important part of the Ethereum ecosystem.
  • User Experience Optimization : Through Layer 2 technology, users will enjoy faster transaction confirmation times and lower fees while maintaining the security of the Ethereum main chain.
  1. Further expansion of decentralized ecology

The next step for Ethereum also includes continuing to promote the development of fields such as DeFi, NFT, and Web3.

  • DeFi Innovation : Ethereum continues to lead the innovation of decentralized finance (DeFi), providing intermediary-free Financial Services to users worldwide.
  • NFTs and Metaverse : ERC-721 and ERC-1155 standards on Ethereum have driven the development of NFTs, which will be further integrated into the metaverse and gaming fields in the future.
  • Web3 Infrastructure : Ethereum will continue to be the core infrastructure of Web3, supporting the construction of more decentralized applications.

Conclusion

The next development goal of Ethereum is to build a faster, more efficient, and lower-cost decentralized network. Through sharding technology, Layer 2 solutions, and ecosystem expansion, Ethereum will solve current scalability challenges and provide a solid foundation for future blockchain applications. With the gradual implementation of these technologies, Ethereum is expected to continue to lead the blockchain industry and promote global digital transformation.

 

*Reference: https://ethereum.org/en/roadmap/

 

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