Five dimensions of Ethereum worth paying attention to in 2024

Author: Kazu Umemoto, Bankless; Translator: Baishui, Golden Finance

As we gather this Thanksgiving, it’s the perfect time to reflect on what inspires gratitude - and for the Bankless community, Ethereum naturally stands out like a star.

Over the past year, Ethereum has made huge new advances, from game-changing Layer 2 upgrades to cementing its place in mainstream finance.

However, beyond its technical and economic potential, what truly sets Ethereum apart is the vision that drives it forward and the passionate community that makes that vision a reality.

With that in mind, let’s take a moment to highlight 5 things to be thankful for in the Ethereum ecosystem in 2024.

1) Blobspace

In March 2024, Ethereum implemented the Dencun upgrade, introducing the original danksharding (EIP-4844) and revolutionizing its scalability. At the heart of this innovation is the "blob", a new type of transaction that allows L2 networks to publish bundles of data to Ethereum at a fraction of the previous cost.

Since then, transaction fees on L2 have dropped significantly, with transaction fees on some networks reduced by 99%. This dramatic drop in costs opens the door to a wider range of users and applications, from DeFi to on-chain gaming. As a result, Ethereum’s vision of a truly accessible decentralized future is closer than ever.

2) Pectra Upgrade Preparation

Not content with the status quo after the Dencun upgrade, the Ethereum community has made considerable progress on the next major evolution, Pectra. Pectra is expected to be the most ambitious upgrade in Ethereum’s history, launching in early 2025 and implementing a wide range of Ethereum Improvement Proposals (EIPs) designed to enhance scalability, performance, and user experience across the network.

For example, EIP-2537 will improve validator efficiency and reduce gas costs, while EIP-7594 will introduce Peer Data Availability Sampling (PeerDAS) to further optimize the way L2 handles data. Another inclusion in Pectra is EIP-7702, which introduces a new transaction type that allows regular Ethereum accounts to temporarily transform into smart contract wallets.

This different transformation advances the Surge phase of the Ethereum roadmap, which focuses on scaling the OG smart contract platform to over 100,000 transactions per second, with major work already underway in recent months. Kudos to all involved!

3) Ethereum ETF

On July 22, 2024, the U.S. Securities and Exchange Commission (SEC) approved the first Ethereum ETF spot, which began trading the following day. These products from major players such as BlackRock, Fidelity, and Grayscale offer U.S. investors a regulated and accessible way to gain exposure to Ethereum without directly holding or managing ETH.

In addition, these ETFs have also attracted interest from state governments. Michigan recently disclosed over $10 million in Ethereum ETF holdings, becoming the first state pension fund to invest in these products. The investment is a compelling signal that ETH is maturing, with mainstream institutions increasingly viewing it as a viable long-term investment. 4) Ethereum Community Ethereum’s vibrant community is an essential component of its ecosystem, a reality that was on full display at this year’s Devcon 7 event in Bangkok, which once again highlighted the depth and diversity of Ethereum’s contributors. It’s this diversity that has brought us everything from fully on-chain generative art on Art Blocks to Justin Drake’s ambitious new Beam Chain proposal to reinvent the Ethereum consensus layer. This “big tent” collective of builders and dreamers, working together for a better, decentralized future, makes Ethereum more than a platform, it’s a movement. That’s the real magic here.

5) Vitalik

Cutting-edge research, extensive writings on Ethereum’s future, significant donations to noble causes, measured and inspiring statements on social media. It is, of course, hard to imagine a single individual who embodies excellence and humility as well as Ethereum founder Vitalik Buterin.

At a time when speculative enthusiasm is once again sweeping the cryptocurrency space, Vitalik serves as a clear beacon, urging the community to focus on Ethereum’s potential for meaningful and revolutionary innovation, not just a money game. He inspires action, not despair, and continues to guide Ethereum forward as a platform for open collaboration and social transformation. We are very lucky to have him.