This episode explores Ethereum's recent changes and their potential impact on the price of ETH, featuring insights from Tarun Chitra and Max Resnick. The discussion begins with an analysis of Ethereum's main problems, with Tarun highlighting the network's unique decision to give away a significant portion of its economics via rollups, while Max argues that Ethereum failed to improve its product, leading users to seek better alternatives like Solana. Against the backdrop of Ethereum's historical focus on decentralization and the challenges of adapting to a rapidly evolving market, the conversation pivots to specific changes, including the increase in gas limits and Vitalik's proposal to simplify the L1. More significantly, the divergence between research proposals and actual code implementation in Ethereum clients is identified as a competitive disadvantage. As the discussion progresses, the conversation shifts to the Ethereum Foundation's focus on financial applications and the need for the network to capture economic value from L2s, with Max suggesting radical measures like blacklisting L2s. Ultimately, the episode underscores the importance of data-driven decision-making and a focus on user retention for Ethereum to maintain its competitive edge and positively impact the price of ETH.
