The Merge isn’t just a milestone for Ethereum—it’s a transformative moment in the evolution of blockchain technology.
On September 15, 2022, Ethereum achieved one of its most significant upgrades since the release of its whitepaper in 2013 and the launch of its mainnet in 2015: The Merge. This pivotal event marked the network’s transition from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism—a shift that reduced Ethereum’s energy consumption by 99%, slashed ETH issuance by 90%, and laid the foundation for drastically lower transaction fees through future scaling solutions like sharding and Layer 2 protocols.
Beyond environmental and economic benefits, The Merge set the stage for Ethereum to scale to 100,000 transactions per second within three years, with projections of reaching 10 million TPS over the next decade. This leap in performance and flexibility reinforces Ethereum’s role as the foundational infrastructure for the metaverse and decentralized applications.
Interestingly, the journey toward this technological breakthrough has deep roots in global collaboration—and one pivotal chapter began in Shanghai.
The Shanghai Connection: Where Global Blockchain Converged
In September 2016, Shanghai hosted the third Ethereum Developer Conference, known as DevCon2, at the Mandarin Oriental Pudong. Nearly 1,000 attendees gathered—90% of them international travelers. For many Chinese tech journalists, it felt surreal: “I walked into the venue and saw mostly foreign faces—I thought I was at a conference in Europe or America,” one remarked on social media.
This landmark event was made possible thanks to full sponsorship and coordination by Wanxiang Blockchain Labs, which brought DevCon2 to China for the first time. Today, Ethereum’s global developer gatherings attract tens of thousands, but back then, this moment was revolutionary—not just for Ethereum, but for blockchain adoption in Asia.
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Crucially, Ethereum’s upgrade roadmap often names major milestones after the cities where DevCons are held. That’s why the post-Merge upgrade restoring full withdrawal functionality became known as “The Shanghai Upgrade”—a nod to this historic gathering.
A Chance Encounter That Changed Everything
My involvement with Ethereum began earlier, in December 2014, when I organized a digital currency panel at the Sanya International Financial Forum hosted by Caijing magazine—one of the first high-profile financial forums in China to seriously discuss cryptocurrencies like Bitcoin and Ethereum.
Shortly after my presentation, I received a WeChat friend request. The sender said he was sitting with Vitalik Buterin, Ethereum’s founder, at Incheon Airport in South Korea, en route to Beijing. He had read about my talk online and wanted to connect. That introduction came through Shen Bo, a key figure in China’s early blockchain scene.
Thus began my direct communication with Vitalik.
Meeting Vitalik: Genius, Humility, and a Love for Cats
When Vitalik visited Shanghai in April 2015, he arrived carrying a tote bag printed with a cat—fitting, given his well-known affection for felines. It wasn’t his first trip to China, but our meeting revealed something remarkable: despite never formally studying Chinese, he could write it competently and speak it haltingly.
His secret? Learning through translated blockchain whitepapers—comparing English originals with Chinese versions to absorb both technical concepts and language. On a taxi ride in New York with Shen Bo and me, I watched him pull out a dictionary app mid-conversation to verify words we’d used. By 2016, he even prepared his presentation slides for Wanxiang Blockchain Week—in fluent Chinese.
During his month-long stay in Shanghai, Vitalik lived at Shen Bo’s home. He had no luxury demands—just simple needs and an enduring curiosity. I once brought him a heavy photography book on cats from Hong Kong. Though impractical for a traveler, I hoped it brought comfort during his long stays in Shanghai—where he spent over three months across multiple trips in 2015.
We met frequently to discuss Ethereum’s vision and how Wanxiang could contribute to blockchain innovation in China.
The Moment That Defined Our Mission
One morning in April 2015, Vitalik came to Wanxiang Tower looking exhausted. Shen Bo pulled me aside: the Ethereum community had held an all-night debate. Developers were worried—the foundation’s cash reserves might not last until mainnet launch.
Here was a 20-year-old visionary leading a project poised to redefine computing infrastructure, yet facing real financial uncertainty. My instinct told me this was more than a crisis—it was an opportunity.
I proposed that Wanxiang Blockchain Labs donate $500,000 to the Ethereum Foundation, with potential for continued support. The goal? To stabilize developer confidence and ensure the mainnet launched successfully.
Since Wanxiang Blockchain Labs was still being registered, the donation was processed through an overseas subsidiary to comply with foreign exchange regulations. The legal teams from both sides drafted a donation agreement under Swiss law (the foundation is based in Switzerland). In return, the foundation committed to allocate a predetermined amount of ETH once tokens were unlocked post-launch.
After the donation was confirmed, Vitalik announced it publicly via a letter to the community—calming fears and affirming that global institutions believed in Ethereum’s future.
This act marked Wanxiang’s official entry into blockchain strategy.
Building an Ecosystem: From Vision to Action
With momentum secured, we launched a series of initiatives:
- Wanxiang Blockchain Labs officially established in late 2015
- First Wanxiang Blockchain Global Summit held in October 2015
- Launch of Distributed Capital, Asia’s first dedicated blockchain fund (with Wanxiang as sole LP)
- Global Blockchain Startup Grant Program introduced
- Publication of the Wanxiang Blockchain Book Series
- Training programs for Chinese blockchain engineers
Our first summit attracted top minds worldwide—many drawn by Vitalik’s endorsement. One pioneering company sent eight team members; when only some received invitations to closed-door sessions, they personally approached me insisting on full access. Their passion was unforgettable.
In early January 2016, we concluded Phase One with China’s first Blockchain Hackathon, co-hosted with Deloitte and supported by three Ethereum Foundation experts—including Vitalik himself. Over 120 global participants formed teams on-site. One winner—a self-funded Italian high school student—asked to join our lab full-time. We convinced him to return home; a year later, he co-founded a major European blockchain project. His story reminded us: in this space, youth drives revolution.
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Expanding Horizons: The Global Blockchain Tour
In May 2016, nine of us embarked on a U.S.-Europe blockchain tour—planned with Vitalik, who joined us in Silicon Valley. We met pioneers, explored startups, and scouted speakers for our next summit.
One highlight: lunch with Nick Szabo, the “father of smart contracts,” in Mountain View. After two years of persistent outreach, he eventually spoke at our 2017 summit.
By September 2016, we hosted the second Wanxiang Blockchain Summit—now expanded into Blockchain Week. The event opened with DevCon2, followed by demo days and global panels.
Because of our earlier funding commitment, we proposed hosting DevCon2 in Shanghai—with Wanxiang covering all costs while revenues went entirely to the Ethereum Foundation. This offer gave birth to Shanghai Blockchain Week, cementing China’s role in global blockchain development.
Looking Ahead: The Rise of a Unified Protocol Stack
As The Merge unfolded in September 2022, I reflected on Ethereum’s trajectory. Much like the internet in the 1980s—fragmented until TCP/IP unified communication—blockchain today faces a multi-chain landscape.
But market forces will drive convergence. Just as HTTP became standard atop TCP/IP, Ethereum is evolving into a full-stack protocol: from L0 (networking, storage) to L1 (base layer), L2 (scaling), and beyond.
With performance targets of 10 million TPS within a decade, Ethereum is positioned not just as a chain—but as the foundational layer for decentralized systems.
Other public chains may eventually integrate as sub-chains, sidechains, or shards within this unified stack—realizing true interoperability.
FAQ: Understanding Ethereum’s Evolution
Q: What is The Merge?
A: The Merge refers to Ethereum’s transition from proof-of-work to proof-of-stake in September 2022. It dramatically reduced energy use and laid groundwork for scalability improvements.
Q: Why is it called “The Shanghai Upgrade”?
A: Ethereum often names major upgrades after cities hosting DevCons. Since DevCon2 took place in Shanghai in 2016, the post-Merge upgrade enabling withdrawals was named accordingly.
Q: How did early funding impact Ethereum’s development?
A: Early institutional support helped stabilize developer morale during uncertain phases. Donations like Wanxiang’s ensured continuity leading up to mainnet launch.
Q: What role does China play in global blockchain innovation?
A: Despite regulatory shifts, China remains influential through technical research, hardware development, and early ecosystem building—especially via events like Shanghai DevCon2.
Q: Is Ethereum still relevant amid competing blockchains?
A: Yes. Its robust developer community, security track record, and layered scaling approach (L2s, sharding) keep it at the forefront of decentralized infrastructure.
Q: What does “unified protocol stack” mean for users?
A: It means seamless interaction across apps and chains—like browsing different websites using one browser—enabling frictionless DeFi, NFTs, and metaverse experiences.
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Final Thoughts: A Legacy of Vision and Collaboration
From a chance WeChat message to shaping global blockchain history, my journey with Vitalik underscores a simple truth: transformative technologies thrive on trust, timing, and collective belief.
The story of Wanxiang’s support for Ethereum isn’t just about funding—it’s about fostering innovation when it matters most.
As we look toward a future defined by scalable, sustainable blockchains, Ethereum stands as both pioneer and platform—a digital backbone ready to power the next era of the internet.
And somewhere out there, another young developer with a backpack full of ideas—and maybe a cat on it—is about to change everything.