Launched in 2015, Ethereum has transformed the landscape of decentralized computing, introducing smart contracts and dApps. It quickly became the second-largest cryptocurrency after Bitcoin.
The Origins of Ethereum
The story of Ethereum begins with Vitalik Buterin, a young programmer and co-founder of Bitcoin Magazine, who in 2013 published the Ethereum whitepaper, proposing a blockchain platform capable of executing programmable smart contracts and hosting decentralized applications. The project quickly gained support from co-founders such as Charles Hoskinson, Gavin Wood, and Joseph Lubin. After a successful crowdfunding campaign in 2014 that raised approximately $18 million, Ethereum officially launched on July 30, 2015, with its native cryptocurrency, Ether (ETH).
Technological Features of Ethereum
Ethereum functions as a decentralized, open-source blockchain platform that enables the creation and deployment of smart contracts and dApps. Smart contracts are self-executing programs that automatically implement the terms of an agreement when predetermined conditions are met. These contracts run on the Ethereum Virtual Machine (EVM). The EVM serves as Ethereum's computational engine, processing and validating all transactions, ensuring the integrity and security of the blockchain.
The Historic Transition to Proof-of-Stake
In September 2022, Ethereum completed the significant 'The Merge' upgrade, transitioning the platform from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism. This shift significantly reduced the network's energy consumption and introduced new economic incentives for network participants through staking rewards.
Ethereum continues to address technical and scalability challenges, maintaining its position as a leading platform in the blockchain industry. The transition to Proof-of-Stake and ongoing development of scaling solutions position it as a crucial technology for the future of Web3 and the decentralized economy.
