Ethereum developers could implement more protocol changes to adapt to changing market structures without compromising its core values, according to crypto venture capital firm Paradigm.
“We think Ethereum’s core protocol could be improving much faster,” Paradigm stated in a January 25 blog post. “There are many high-impact improvements that Ethereum can start accelerating towards today without sacrificing its values.”
Historically, Ethereum has introduced around one significant change per year. Paradigm believes Ethereum can do more, urging developers to speed up protocol improvements.
Paradigm acknowledged the ongoing debates about whether Ethereum should prioritize its base layer or layer 2 networks, and the balance between decentralization and efficiency. While these discussions are important, the firm argued that “discussions about tradeoffs in values might be premature” and could lead to unnecessary rigidity.
“Ethereum has the resources it needs — incredible researchers and engineers eager to build the future,” Paradigm added. “Empowering them with a mandate to move faster, and in parallel, will enable Ethereum to solve problems faster and avoid getting bogged down in premature debates.”
Focus on Ethereum’s Core Values
Ethereum’s core values, such as decentralization, openness, and remaining credibly neutral, should continue to guide the protocol’s evolution. Paradigm emphasized that accelerating protocol changes is critical for Ethereum to push blockchain innovation and fulfill its ambitious roadmap.
The firm also stressed that developments in client diversity shouldn’t slow down the speed of shipping new features. Paradigm highlighted its work on Ethereum’s testnet, Reth, where developers can experiment with new ideas, as an example of how faster iteration can benefit Ethereum’s overall growth.
Paradigm proposed that Ethereum layer 2s should inherit security from the base layer through “native” rollups, a recommendation many Ethereum layer 2 executives agreed with on the same day the blog post was published.
The firm also called for improvements to Ethereum’s mainnet scalability without altering the block gas limit. Additionally, Paradigm suggested enhancing wallet infrastructure to simplify the user experience, such as eliminating the need for users to remember their private keys.
In parallel, the Ethereum Foundation announced that it would allocate 50,000 Ether (worth around $160 million) to support Ethereum’s decentralized finance ecosystem. This move comes just days after Ethereum co-founder Vitalik Buterin announced organizational changes at the Ethereum Foundation aimed at providing more support for developers and increasing transparency within the community.
What The Author Thinks
While Ethereum’s commitment to decentralization and openness should remain unchanged, it’s time to push for faster innovation and protocol updates. In today’s fast-moving crypto landscape, Ethereum cannot afford to be bogged down by lengthy debates or slow iteration. The technology is maturing, and Ethereum has the talent and resources to keep up with the evolving needs of the blockchain space. By accelerating development, Ethereum will stay ahead of competitors and continue to meet its community’s expectations without compromising its foundational principles.
