Ethereum, the second-largest cryptocurrency, is constantly evolving. Vitalik Buterin, one of the Ethereum co-founders, called for a ‘rebuild era’ to strip down and streamline the network. This proposal aims to address the concerns Ethereum is dealing with today. If done right, it can fuel a new era of innovation and adoption. What does this rebuild look like? Or, might it be the catalyst for yet another big price run, like the one we all enjoyed after this last Pectra upgrade? Let's dive into the details.

What is the 'Rebuild Era' Proposal?

The ‘rebuild era’ is not about throwing away Ethereum and starting over again. Rather, it’s a smart tactical move focused on making things simpler and more efficient. Key elements of this proposal include:

  • Replacing the Ethereum Virtual Machine (EVM) with RISC-V: The EVM is the engine that executes smart contracts on Ethereum. Switching to RISC-V, a modern, open-source instruction set architecture, could bring several benefits. RISC-V is known for its efficiency, simplification, and the flexibility it offers to developers.
  • Simplifying and improving the Ethereum execution layer: This focuses on streamlining the process of executing transactions and smart contracts. The goal is to make the network more efficient without sacrificing its decentralized nature.
  • Machine-level optimization: This includes optimizing the system for RISC-V and designing it to be ZK-native. This could allow Ethereum to compete with other blockchains that are hyper-optimized for specific tasks.

The overarching theme is making Ethereum more user-friendly, more scalable, and more attractive to potential competitors in the future.

Why Simplify Ethereum?

The call for simplicity comes from a variety of factors. Ethereum has evolved rapidly in such a short time—along with that maturation comes a fair amount of complexity. Simplifying the network can address several key issues:

  • Improved Efficiency for Zero-Knowledge Proofs (ZKPs) and Layer-2 Scalability: ZKPs are a privacy-enhancing technology that is also crucial for scaling Ethereum. Simplification could lead to dramatic improvements in ZKP generation times, potentially by a factor of 10x to 100x. This would make zk-rollups and privacy-first applications much more practical.
  • Developer Adoption: A simpler Ethereum is easier for developers to understand and work with. This can lead to increased developer adoption and a wider range of applications being built on the platform.
  • Competition: The blockchain landscape is becoming increasingly competitive. Simplified EVM ensures the platform is adaptable to future innovations, reducing the risk of technical debt, which can encourage developers to build and innovate on the platform.

How Could This Impact Ethereum?

The 'rebuild era' proposal has the potential to significantly impact Ethereum in several ways:

  • Ecosystem Development: ZK-first ecosystems could flourish, enabling a new wave of privacy-focused applications and zk-rollups that dramatically improve scalability.
  • Developer Experience: Simplifying the EVM can ensure that developers can continue using their preferred tools and frameworks without needing to downgrade or modify their setup, assuring a smooth transition and promoting adoption. By simplifying the EVM, developers can have access to modern Solidity features and optimizations, permitting them to use new opcodes, improved gas efficiency, and advanced functionality without limitations.
  • Performance and Integration: A simplified EVM can achieve industry-leading performance, with high transaction throughput (e.g., 9,000 lightweight transaction executions per second and 320-800 Ethereum-based transactions per second), making it more attractive to developers and promoting adoption. Simplifying the EVM can make it easier for developers to integrate with other systems and tools, reducing the complexity and effort required to build and deploy applications, which can lead to increased adoption and innovation.

Cultural Shifts and Practical Considerations

Beyond the technical, there’s deeper ‘rebuild era’ thinking that needs to take place, and work underway to help the Ethereum community focus their mindset. This includes:

  • Moving beyond abstract ideals and aspirational messaging: The community needs to focus on addressing real challenges facing the network, rather than just relying on idealistic narratives.
  • Embracing a more nuanced understanding of decentralization: The community must recognize that decentralization is not evenly distributed across all layers of the ecosystem, particularly in the context of financial instruments susceptible to regulatory oversight and issuer control.
  • Shifting from permissionless innovation to practical considerations: The community needs to move beyond just defending permissionless innovation and consider the practical implications of this approach, including the potential risks and challenges.
  • Fostering a culture of transparency and accountability: The community must promote transparency and accountability within organizations and projects, rather than tolerating duplicity.
  • Encouraging diverse perspectives and voices: The community should strive to elevate diverse voices and perspectives, rather than de-platforming individuals who disagree with dominant narratives or interests.

This change in mindset is just as important. It will make sure that all of the technical advancements of the ‘rebuild era’ translate into meaningful benefits for the Ethereum ecosystem.

Could This Lead to a Price Rally?

It’s too soon to know for sure if the ‘rebuild era’ will result in a massive Ethereum price rally. The recent Pectra upgrade introduced some exciting new wallet features, increased staking limits and really cool scalability improvements. Because of this, the price increased massively, rising by almost 20% in less than a day.

The ‘rebuild era’ is all about making Ethereum more useful and attractive to everyone. While different from the Pectra upgrade, both are focused on the same outcome. If we’re able to make what’s being proposed a reality, we will be able to greatly increase adoption and innovation. That commitment to dramatic expansion is what could ultimately send ETH soaring.

The Ethereum community is constantly trying to push the envelope and innovate. The ‘rebuild era’ proposal offers that focused vision of what our network could look like. I’m looking forward to seeing how it all plays out!