Ethereum: A story of growth and division

Author: Wei Dai, 1kx Research Partner; Translated by: 0xxz@Bitchain Vision

Once upon a time, there was a prosperous city-state called Ethera, known for its innovation and wealth.At its peak, Ethereum was the core of the world economy, and its prosperous market, vibrant art and flourishing trade made it an envy of everyone.But prosperity brings growth, and growth brings pressure.As the Ether population expanded, its infrastructure began to collapse.Activities such as Great Summer Farm and the Art Fanaticism have attracted a large number of farmers and art collectors, causing unprecedented congestion and a soaring cost of living.

The city’s leaders saw an imminent crisis.They warned: “Ether is suffocating from its own success.” What is their solution?expansion.They declared: “The future of Ether is multi-city” and encouraged citizens to establish new settlements outside the city’s borders.These new cities will continue to be affected by the ether, allowing metropolis to develop without losing their core identity.

Immigration has begun.At first, the new settlements were similar to Ethera, but over time they formed their own culture and character.For some time, the plan worked.Ethera thrives as the people of Ethera expand into new lands.But soon, a new problem arose: the roads connecting these cities are not standardized.Some roads are paved with stone, some are paved with dirt, and many require complex tolls and paperwork to cross the area.Once a short walk to exchange goods, it has become a long and tortuous journey through a broken network.

Trade slowed down.Ethera’s once bustling market has become unusually quiet, and tax revenues have also decreased as fewer and fewer merchants return to the capital.The Ethereum city-state, once the center of the world, is now facing a slow decline.

Then there is Blob Boom, a technological breakthrough that enables satellite cities to expand quickly and cheaply.As these periphery regions flourished, their trade routes completely bypassed the Ethera market.The transaction was conducted through the blob-enhanced highway, further depleting Ethera’s lifeblood.

Worse, many new cities began taxing themselves, choosing to keep their wealth in their territory rather than sending it back to Ethera.These cities were once part of a major alliance, and now gradually became independent forces, forming new alliances that left Ethera behind.

Meanwhile, around the world, a new metropolis, Solara, has risen.Unlike Ethera, Solara discourages its people from spreading outward.Instead, its leaders focus on vertical growth, investing in future technologies such as flying cars, airflow turbines and towering skyscrapers.This allows Solara to grow without expanding outward.Cargo and people flow freely within its territory, and soon Solara’s population surpassed Ethera.

In Ethera, fierce debate broke out.”Our satellite cities are parasites!” some shouted, frustrated by their growing independence.Others believe that Ethera should follow Solara, move upward and invest in cutting-edge technology.But some warn against just copying Solara.“Vertical growth can only let us go so far,” they warned, noting that Solara is also beginning to face restrictions on expansion.Instead, they proposed another solution: to build a universal highway—standardized, seamless roads that reconnect all cities in the Ethera Federation.They believe these highways will restore the flow of goods and taxes and reignite the trade that once made Ethera great.“The real strength of Ethera,” they argued, “is not about how high we build, but about how well we can connect.”

Ethera is standing at the intersection now.Should it mimic Solara’s towering skyline or focus on repairing the fragmented paths that split the federation?Can it impose a federal tax without alienating its most prosperous satellite cities?This choice not only determines the future of Ethera, but also sets a precedent for decentralized economies around the world.

In the dark, a small group of engineers are silently committed to achieving a bold vision that towering vertical buildings and connected highways can coexist, opening a new era of prosperity.Their plans even promise strong tax systems to maintain the capital and satellite cities.It is an ambitious idea to reshape the world for future generations.

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