Ethereum (ETH)

Ethereum is a blockchain-based platform that enables the creation and execution of decentralized applications (dApps) through the use of smart contracts. Unlike traditional centralized systems, Ethereum operates on a decentralized network, allowing for greater autonomy and security for its users.

Ethereum was the first blockchain to introduce smart contracts, and as a result, it has the largest ecosystem of dApps, including decentralized exchanges, crypto lending platforms, and more. Additionally, Ethereum offers a variety of Layer 2 solutions, such as Arbitrum and Polygon, which offer faster and cheaper transaction processing.

Ethereum also allows for the creation of ERC-20 tokens, which can be used as native tokens for dApps on the Ethereum blockchain. These tokens can be used for governance, utility purposes such as paying trading fees, or as stores of value, like stablecoins like USDT and USDC. However, it is important to note that gas fees for transactions are still paid in ETH, as transactions are recorded on the Ethereum blockchain.

The Ethereum project was first proposed by Vitalik Buterin in a whitepaper published in 2013, with more technical details provided in the yellowpaper by Gavin Wood in 2014. A fundraising sale was conducted in September 2014 and the network went live in July 2015. On September 15, 2022, Ethereum transitioned from a Proof-of-Work to a Proof-of-Stake consensus mechanism with the Merge.

With the Merge now complete, the final stage of Ethereum 2.0 is sharding, where the database on the Ethereum blockchain will be divided into 64 shard chains. Sharding allows for each validator to only verify the respective shards they are responsible for, rather than verifying the entire network, making the network more efficient and scalable.