Ethereum (ETH): An Overview

What is Ethereum (ETH)?
Introduced by Vitalik Buterin at the North American Bitcoin Conference in 2013, Ethereum is a decentralized, open-source blockchain project that enables the execution of smart contracts on its platform. It has paved the way for various token standards like ERC-20 and ERC-721. The native cryptocurrency of the Ethereum blockchain is Ether (ETH).

Ethereum's Development
Emerging after Bitcoin, Ethereum quickly evolved post its 2014 announcement, spawning numerous sectors and new tokens within the cryptocurrency world. The platform faced challenges but also paved the way for decentralized finance (DeFi) to become a significant sector.
Initially, Ethereum operated on the Proof of Work (PoW) algorithm but transitioned to Proof of Stake (PoS) in September 2022, a move known as the Ethereum Merge. This transition aimed to make Ethereum more scalable, faster, and decentralized.


Founders of Ethereum
Vitalik Buterin initiated Ethereum's development in 2014, receiving support from figures like Mihai Alisie, Anthony Di Iorio, Charles Hoskinson, and Gavin Wood. To ensure the blockchain's functionality, the Ethereum Foundation, a non-profit, was established in 2014.
Ethereum's Historical Milestones
Since its introduction at the North American Bitcoin Conference, Ethereum has grown in popularity. Notably, in 2016, a vulnerability led to a $50 million theft, causing a hard fork, resulting in Ethereum Classic. The platform saw significant developments, like the ERC-20 standard in 2017, facilitating token creation.
How Does Ethereum Operate?
Ethereum functions on a decentralized model, unlike traditional servers, utilizing nodes globally. The network's transparency ensures that transactions are visible to third parties, although it also offers user anonymity.
Transactions on Ethereum require ETH for processing fees, known as "gas." The network uses the PoS mechanism, requiring validators to stake a minimum of 32 ETH to add blocks to the blockchain.
ERC-20: A Token Standard
ERC-20 is a standard for creating tokens on the Ethereum blockchain, proposed by Fabian Vogelsteller in 2015. This standard defines fundamental rules, such as token behavior and supply, for tokens within the Ethereum ecosystem.
Ethereum Mining & Transition to Proof of Stake
Initially, Ethereum used the PoW algorithm, similar to Bitcoin. However, with the Ethereum Merge in September 2022, it transitioned to the PoS algorithm, ending mining activities.
Ethereum Merge: The Transition
The Ethereum Merge in September 2022 marked the blockchain's shift from PoW to PoS, emphasizing scalability and sustainability.
Advantages of Ethereum

• Smart Contract Development
• Robust Developer Community
• Diverse Ecosystem

Disadvantages of Ethereum

• High Transaction Fees
• Scalability Issues

Future of Ethereum
Ethereum's potential lies in its robust technological foundation, hosting projects in DeFi, NFTs, and the Metaverse. With Ethereum 2.0, the platform aims for enhanced scalability and decentralization, making it a focal point for institutional investments and widespread adoption.