Ethereum has undergone a remarkable transformation over the past 10 years, evolving from a novel idea into a cornerstone of the blockchain world¹. This journey began with its

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conceptualization in 2013, when programmer Vitalik Buterin proposed it as a platform for decentralized applications (dApps).

Subsequently, an Initial Coin Offering (ICO) was held in 2014 to raise funds for its development.

The launch of Ethereum’s mainnet came in July 2015, introducing its native cryptocurrency, Ether (ETH), as well as the concept of smart contracts. Ethereum quickly gained a following among developers and enthusiasts who saw its potential for building innovative dApps.

Then, in 2017, its popularity surged, fueled by the rise of ICOs and growing interest in cryptocurrencies.

Despite this growth, Ethereum experienced significant price swings, reaching an all-time high in 2017 before a sharp decline in 2018.

Additionally, as the network grew, it faced challenges with scalability and transaction fees.

However, Ethereum became the leading platform for decentralized finance (DeFi) applications, enabling the lending, borrowing, and trading of digital assets. This DeFi boom has had a profound and multifaceted effect on Ethereum, expanding its use cases beyond just a digital currency.

Consequently, the surge in DeFi activity led to increased transaction volume and network congestion, which in turn spurred the development of Layer-2 scaling solutions.

Moreover, the rise of non-fungible tokens (NFTs) further expanded Ethereum’s use cases.

The growing demand for ETH

To interact with these DeFi protocols contributed to its price appreciation and attracted a large number of developers to the ecosystem. While DeFi has been a major catalyst for Ethereum’s growth, it has also brought challenges, including smart contract vulnerabilities, security risks, and regulatory uncertainty.

Because of the need for improved scalability and security to support DeFi applications, the direction of Ethereum’s development has been influenced, driving research into solutions like the transition to Proof-of-Stake (PoS) and Layer-2 scaling.

A major milestone in Ethereum’s evolution was

The Merge in 2022, which successfully transitioned the network from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism, significantly improving its energy efficiency and security. Another key upgrade was the

London upgrade in August 2021.

Specifically, this upgrade introduced EIP-1559, which aims to improve the network’s transaction fee mechanism by introducing a “base fee” that is burned, potentially making ETH a deflationary asset.

In addition, users can include a “priority fee” or “tip” to incentivize miners to prioritize their transactions. This has resulted in more predictable fees and an improved user experience.

As for the topic of forks, they are changes or updates to the Ethereum blockchain.

Soft and Hard Fork

A soft fork is a minor, backward-compatible change , whereas a hard fork is a more significant, non-backward-compatible change that can create a new version of the blockchain with different rules.

For example, The DAO hack in 2016 led to a hard fork that split Ethereum into two separate chains: Ethereum (ETH) and Ethereum Classic (ETC). This was a direct response to a major security breach where a vulnerability in The DAO’s smart contract led to the theft of 3.6 million ETH.

Although the community decided to hard fork to reverse the theft, this decision was controversial as it went against the principle of blockchain immutability.

In conclusion, Ethereum’s future remains bright, as its ongoing developments and vibrant community continue to drive its growth. It will continue to play a significant role in the evolution of the decentralized web.

More resources

• Ethereum London Upgrade | Zengo
• EIP-1559: A Major Upgrade for Ethereum | Galaxy
• What is EIP-1559? How Will It Change Ethereum? | Consensys. 
• EIP-1559 Explained: Enhancing Gas Fees on MetaMask 
• Hard Fork: What It Is in Blockchain, How It Works, and Why It Happens
• Ethereum Fork: The All-In-One Tutorial.
• More from my blogs about cryptocurrency