Development and Outlook in the Web3 Field: Innovations and Challenges of the Ethereum Ecosystem

In recent years, the blockchain and Web3 fields have made significant progress in various aspects, including scalability solutions, cross-chain interoperability, decentralized finance (DeFi), non-fungible tokens (NFTs), and emerging standards such as ERC-404. The Ethereum ecosystem, as one of the most mature blockchain platforms, has always been a focus of innovation and development.

ETHDenver, as an important event in the industry, continues to attract blockchain enthusiasts and professionals from around the world. The 2023 event drew 30,000 attendees, setting a new record. The 2024 ETHDenver is expected to gather over 20,000 community members to discuss innovative ideas and promote the future development of blockchain technology.

ETHDenver not only showcases technological advancements but also fosters a sense of community and collaboration among participants. It integrates blockchain technology, culture, and education, becoming an important event in the industry that cannot be missed.

The future development of the Ethereum ecosystem mainly focuses on improving scalability, enhancing privacy protection, and expanding overall usability. Among them, the implementation of layer two scaling solutions (rollups) and EIP-4884 is expected to bring significant improvements to the scalability of layer two networks. Additionally, advancements in decentralized identity (DID), DeFi, decentralized autonomous organizations (DAO), and hybrid applications are also highly anticipated.

The core principles of Ethereum include decentralization, open participation, censorship resistance, and trust neutrality. Technologies such as rollups, zero-knowledge proofs, account abstraction, and privacy solutions are expected to further reinforce these values. The application scope of Ethereum is anticipated to continuously expand, covering secure and private online interactions, as well as more democratic forms of governance.

In 2024, the infrastructure and ecosystem of the Web3 domain are expected to undergo significant developments. Here are several key areas of outlook:

Decentralized Finance (DeFi)

• Regulation and transparency will become the focus, especially for hybrid finance (HyFi) projects.
• On-chain stablecoin trading volume may surpass traditional payment giants, indicating that financial transactions are shifting towards blockchain methods.
• The proportion of liquid staking ETH in the Ethereum ecosystem is expected to increase, enhancing overall liquidity and usability.
• Private transactions and gasless transactions may become more common.

Web3 games

• Blockchain elements will be more deeply integrated into game mechanics, and more diverse types of Web3 games are expected to emerge.
• Collaboration between traditional gaming companies and Web3 startups may increase.
• The ERC-404 standard may revolutionize the ownership, trading, and cross-platform integration of in-game assets.
• Improvements to developer tools may facilitate the wider adoption of Web3 elements.

Non-Fungible Token (NFT)

• NFTs are expected to become a major driver of Web3 adoption in 2024, with a focus likely shifting towards unique applications and broader digital ecosystem integration.
• The ERC-404 standard may address some core issues faced by the NFT market by increasing liquidity and accessibility.
• The concept of fractional ownership may attract more collectors and investors to participate in the NFT market.

In 2024, the Web3 sector is expected to demonstrate deeper integration, maturation, and adaptation to regulation. Interoperability between chains and ecosystems, coupled with innovations in the gaming and NFT fields, is likely to propel the industry towards a more mature and mainstream direction.