Last updated on April 22nd, 2024 at 03:05 pm
Since its development in 2013, the Ethereum blockchain has undergone significant changes that have shaped its current setup.
Originally conceived as an improvement to the Bitcoin network, Ethereum was designed to support smart contracts and enable the creation of decentralized applications (dApps).
The network has gained wide adoption, recording the most developer activities in building innovative blockchain-based solutions for individual and enterprise-grade projects.
Meanwhile, it has constantly evolved to fit the needs of its expanding user base.
Since its development in 2013, the Ethereum blockchain has undergone significant changes that have shaped its current setup.
Originally conceived as an improvement to the Bitcoin network, Ethereum was designed to support smart contracts and enable the creation of decentralized applications (dApps).
The network has gained wide adoption, recording the most developer activities in building innovative blockchain-based solutions for individual and enterprise-grade projects.
Meanwhile, it has constantly evolved to fit the needs of its expanding user base. These traits paved the way for its ascent to become one of the most popular blockchain networks.
This article highlights the significant milestones that have marked Ethereum’s remarkable journey.
Let’s delve just right in.
Release of Ethereum’s Whitepaper and Yellow Paper
Everything publicly known about Ethereum today started with Vitalik Buterin and Gavin Wood releasing Ethereum’s whitepaper and yellow paper in 2013 and 2014, respectively.
The whitepaper provided a general framework for the Ethereum ecosystem, while its yellow paper focuses on more technical blockchain concepts. This exposition of the technical framework paved the way for the public launch of Ethereum in 2015.
Ethereum’s Ether (ETH) Public Sale
Ether (ETH) was designed as the native token of the blockchain to process transactions on the network, serve as payment for gas, and reward miners for securing the network (as Ethereum was a Proof-of-Work network at the time).
The ETH public sale went live on June 22, 2014. During the 42-day sale, which lasted until September 2, 2014, participants interested in purchasing ETH could exchange Bitcoin (BTC) for ETH at a rate of 1 BTC to 2000 ETH. However, the ETH tokens remained untransferable until the genesis block.
It’s worth noting that Ether public offering was promoted as a product and not as a security or investment offering.
Genesis Block and Ethereum Virtual Machine (EVM)
Ethereum’s Genesis block was mined on July 30, 2015, after the blockchain and all its features went live.
Initially, Ethereum gained traction among developers and blockchain enthusiasts due to its Ethereum Virtual Machine (EVM), which enabled the execution of smart contracts and the development of innovative decentralized applications (dApps) and initial coin offerings (ICOs).
A series of forks—changes in the blockchain’s architecture to allow the addition of new details—were initiated to allow for future upgrades on the Ethereum network.
The DAO Fork
This fork is a notable one in Ethereum history. It was created in July 2016, on block 1920000, in response to a hack on a decentralized autonomous organization (DAO) called “The DAO.” This fork enabled the recovery of over 3.6 million ETH lost in a hack. Though this hack did not directly affect Ethereum, it exploited vulnerabilities in The DAO, a protocol developed on the network on the blockchain to facilitate decentralized community governance.
The Ethereum community decided to perform the DAO fork after over 85% of ETH holders voted in favour of the fork to recover the lost funds. However, some miners disagreed with the fork and chose to remain on the original Ethereum network, now known as Ethereum Classic.
Byzantium Fork
This fork introduced features to make Ethereum compatible with scaling solutions. It was effected on October 16, 2017. It also reduced Ethereum’s mining reward from 5 ETH to 3 ETH; at that time, the value of one Ether was $334.23.
Introduction of the Beacon Chain
In December 2020, the Beacon Chain was introduced as a separate blockchain on the “Ethereum 2.0 testnet” or “Pyrmont testnet” for Ethereum 2.0 development and experimentation. This paved the way for Ethereum’s transition from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism.
Altair Upgrade
The Altair upgrade occurred on October 27, 2021, marking the first major scheduled upgrade on the Ethereum blockchain. The upgrade added sync committees to the network and increased penalties for validators who are inactive or behave dishonestly.
Sync committees made accessing the blockchain faster and more efficient for everyone, allowing more people to participate in the network and stay updated on the latest transactions and updates, while stricter penalties were introduced to ensure that validators actively participated and maintained the network’s security.
The Altair upgrade occurred on the beacon chain, which doesn’t require computational problem-solving like the PoW network, making it possible to perform the first pre-timed upgrade on the Ethereum blockchain.
Ethereum’s price at that time was $4,024.
Bellatrix Upgrade
The Bellatrix upgrade was the second scheduled upgrade on the Beacon chain. The upgrade changed how the blockchain decides which blocks to follow, known as “fork choice rules.” These changes helped to smoothly transition from the last block on the Proof-of-Work system to the first block mined on the Proof-of-Stake system, which is more energy-efficient and sustainable.
The upgrade also included setting penalties to maximum values for inactive validators or committing harmful actions. This measure further ensured that validators took their roles seriously and didn’t behave dishonestly.
The Merge (Paris Upgrade)
The upgrade saw Ethereum finally transition from a PoW to a PoS network, and the Beacon Chain went live on the main net. It occurred on block 15,537,394 on September 15, 2022.
Before the Merge, the Ethereum Foundation set requirements for validators who wanted to transition to the Proof-of-Stake (PoS) network. Network participants were required to deposit their ETH to begin the new consensus paradigm. As a result, more than 400,000 validators participated, collectively staking approximately 13,000,000 ETH before the merge occurred.
Video about the Ethereum Merge
The merge didn’t stop the operation of the Ethereum blockchain, and users didn’t need to take any special actions to prepare for it. Although The merge has happened, you can still stake your Ether (ETH) to secure the Ethereum blockchain and earn rewards. At the time of the Merge, Ether (ETH) was trading at less than 50% of its all-time high.
Capella and Shanghai Upgrades
These are the latest upgrades to the Ethereum architecture; both occurred simultaneously on April 12, 2023 —hence the common name “Shapella”. The result of both upgrades was allowing validators to withdraw their staked ETH.
Following The merge, validators could not withdraw their staked Ether (ETH) and had to wait until the implementation of the Capella and Shanghai upgrades.
Before these upgrades, there were speculations that significant withdrawals of staked tokens could cause a drastic decline in ETH’s market value. However, the on-chain data after the upgrades indicated that most withdrawals consisted of profits earned from staking rather than originally deposited ETH.
The token’s price also went on an upward trend which was attributed to increased confidence among validators and stakers, knowing they now had the freedom to initiate withdrawals at any time.
This newfound flexibility in withdrawing staked ETH contributed to a more favourable perception of the Ethereum 2.0 staking mechanism compared to the period before the upgrades when such withdrawals were not possible.
What’s Next for Ethereum?
Ethereum, in its current state, is still subject to further developments, with upcoming plans and upgrades aimed at enhancing the network’s security, scalability, and sustainability for everyday use. Vitalik Buterin has outlined his vision for Ethereum upgrades, categorizing them into distinct phases such as The Merge, The Surge, The Scourge, The Verge, The Purge, and The Splurge.
The timeline for these upgrades varies, with some expected in as little as six months, while others may take up to a decade. The urgency of implementation is influenced by the priority assigned to each upgrade, exemplified by the DAO fork, an unplanned event triggered by a hack.
While the Ethereum merge has been largely misinterpreted as a single event that will ultimately increase Ethereum’s throughput, the reality is that Ethereum’s road to scalability is not an instantaneous journey but rather something that would take shape over a series of upgrades/events.
As Ethereum journeys towards becoming a scalable network, current solutions available for end-users and developers alike include Ethereum Layer 2 solutions. These solutions make transactions faster and cheaper while leveraging Ethereum’s tested security.
In fact, the Ethereum Foundation has identified Layer 2 scaling solutions like rollups as an important part of making Ethereum scalable. Danksharding, for instance, is a feature inspired by Layer 2s and is identified as what would eventually help Ethereum scale, enabling it to process up to 100,000 transactions per second (TPS).
In conclusion, Ethereum’s growth and development are proof of its dedication to sustainability and scalability, and its approach toward innovation will ensure that it remains at the forefront of the blockchain industry for a long time.
Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
If you would like to read more articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
