Introduction
While Bitcoin introduced the world to blockchain technology, its applications remain primarily financial. In contrast, Ethereum (ETH) has expanded cryptocurrency utility through smart contracts and decentralized applications (DApps). This article explores Ethereum's background, technological foundations, and evolution toward "Eth2.0."
What Is Ethereum?
Ethereum is a public blockchain platform enabling smart contracts and DApps. Key components include:
| Feature | Description |
|---|---|
| Ethereum Virtual Machine (EVM) | Executes code for decentralized applications. |
| Smart Contracts | Self-executing agreements stored on-chain. |
| Decentralization | No single entity controls the network. |
Unlike Bitcoin, Ethereum supports Turing-complete programming (e.g., JavaScript, Python), allowing complex DApp development. However, this flexibility introduces potential vulnerabilities like bugs or exploits.
Historical Milestones of Ethereum
Ethereum's development unfolded across four major phases:
1. Frontier (2015)
- Launched as Ethereum's first live version.
- Used Proof-of-Work (PoW) mining (similar to Bitcoin).
- Adjusted mining difficulty to prepare for future Proof-of-Stake (PoS) transitions.
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2. Homestead (2016)
- Marked Ethereum's first stable release.
Addressed the DAO Hack via a controversial hard fork, splitting the chain into:
- ETH (current chain)
- ETC (Ethereum Classic).
3. Metropolis (2017–2019)
Introduced critical upgrades:
- Atomic Swaps: Enabled cross-chain trades with Bitcoin.
- ERC-20 Standard: Fueled the ICO boom.
- Price Volatility: ETH surged to $1,400** (2018) before crashing to **$85.
4. Serenity (Ethereum 2.0, 2020–Present)
- Transitioned to PoS (energy-efficient validation).
- Implemented Layer-2 Solutions (e.g., rollups, sidechains) to scale transactions.
- Focused on sharding to improve throughput.
Why Ethereum Matters
Ethereum’s smart contract functionality enables:
- DeFi (Decentralized Finance)
- NFTs (Digital Ownership)
- Web3 Applications (User-controlled data)
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FAQs
Q: What’s the difference between Ethereum and Ether?
A: Ethereum is the platform; Ether (ETH) is its native cryptocurrency.
Q: How does PoS improve Ethereum?
A: PoS reduces energy use by replacing miners with validators who "stake" ETH.
Q: What are Layer-2 solutions?
A: They process transactions off-chain (e.g., Optimism, Arbitrum) to reduce fees and boost speed.
Conclusion
From its 2015 launch to Eth2.0, Ethereum has redefined blockchain utility. Its shift to PoS and Layer-2 scaling promises a faster, greener future for decentralized applications.