Since its introduction in 2013, Ethereum has undergone massive changes that have significantly transformed its initial setup. Ethereum was designed as an improvement to the Bitcoin network, supporting smart contracts and enabling the creation of dApps. Throughout the time, the network gained massive adoption, recording vast activity from developers in creating innovative blockchain-based solutions for enterprises and individuals alike.
Ethereum has attracted many enthusiasts who learn how to buy ethereum and take advantage of the opportunities that arise. Given its expanding user base, the blockchain has evolved massively to meet expectations, paving the way for remarkable ascent.
At the moment, Ethereum is one of the most trustworthy blockchain networks, but how did it come so far? In this blog, we will examine the significant milestones that have shaped Ethereum’s journey so far, so keep reading!
Ethereum’s whitepaper and yellow paper release
Ethereum’s journey started when Vitalik Buterin and Gavin Wood released the whitepaper and yellow paper in 2013 and 2014, respectively. While the whitepaper offered a general framework for how the Ethereum ecosystem works, the yellow paper comprised the technical blockchain concepts. These two documents paved the way for Ethereum’s public launch in 2015.
The ETH public sale
Ethereum was developed as the native blockchain’s token, aiming to process network transactions, serve as gas payment, and reward miners who work hard to secure the network. On June 22, 2014, the ETH public sale went live and lasted until September 2, enabling participants to purchase ETH seamlessly: they could exchange BTC for ETH at a convenient rate—1 BTC to 2000 ETH. But it wasn’t until the genesis block that the ETH tokens truly became transferable.
Ethereum’s Genesis Block and EVM
On July 30, 2015, the Genesis Block of Ethereum was mined – this event happened once the blockchain and its features went live. Ethereum became popular among developers thanks to the EVM, or the Ethereum Virtual Machine, which allowed for the execution of smart contracts and the development of dApps and ICOs. After this time, a series of changes (forks) were initiated in the blockchain architecture meant to enable future improvements on the Ethereum network.
The DAO fork
This is a notable fork in the history of Ethereum, created in July 2016 in response to a hack on a DAO (decentralized autonomous organization). This fork helped recover over 3.6 million ETH lost in the hack, exploiting the DAO’s vulnerabilities. The DAO fork was conducted after more than 85% of ETH holders voted for the fork to be used as a way to recover the lost funds – it’s worth noting, however, that some miners didn’t agree with the fork and they instead decided to stay on Ethereum Classic, which is the original Ethereum network.
Beacon Chain
December 2020 marked the introduction of the Beacon Chain – a separate blockchain on the Pyrmont testnet or Ethereum 2.0 testnet for developing Ethereum 2.0, which simultaneously paved the way for the transition from a PoW to a PoS consensus mechanism.
Altair Upgrade
The Altair upgrade happened on October 27, 2021, and represented the most significant upgrade to transform the Ethereum blockchain. This upgrade included sync committees on the network, boosting penalties for those validators who displayed dishonest behaviour or were inactive. Due to the sync committee, it became possible to access the blockchain faster, and more people find it easier to participate in the network and stay up-to-date with the latest transactions.
Bellatrix upgrade
The Bellatrix upgrade was the next significant milestone for the Beacon chain, meant to change the fork choice rules -namely, how the blockchain gets to choose which blocks to follow. This upgrade resulted in the transition from the last block on the PoW system to the first block on the PoS system – one that is more sustainable and energy-efficient. Furthermore, the Bellatrix upgrade was designed to set penalties to maximum value for validators who committed harmful actions or were inactive, ensuring they took their responsibility seriously.
The Ethereum Merge
This upgrade remained in the history of Ethereum and was the one that finally made the transition from PoW to PoS possible. Before this event, the Ethereum Foundation established requirements for validators who looked to transition to the PoS network, and participants needed to deposit their ETH in order to start the new consensus paradigm. Hence, over 400,000 validators participated, staking around 13,000,000 ETH before the Merge happened. It’s worth noting that this upgrade didn’t prevent the operation on the Ethereum blockchain, and no special actions were needed to prepare for it.
The Shapella upgrade
The purpose of this upgrade was to enable validators to withdraw their staked ETH – which was no longer possible after the Merge. Before the Shapella upgrade went live, there were speculations that massive withdrawals of staked tokens could considerably impact ETH’s value, leading to a drastic decline. However, as the on-chain data after the upgrades showed, most withdrawals involved profits earned from staking and not from the originally deposited ETH. The token’s price experienced an upward trend, associated with enhanced confidence among stakers and validators, who knew they had the opportunity to initiate withdrawals anytime they wanted to. This newfound flexibility put the Ethereum 2.0 staking mechanism in a favorable light compared to the time before the upgrades happened when withdrawals weren’t possible.
The Dencun upgrade
This year, on March 13, the Ethereum blockchain underwent different improvement proposals, which are known as the Dencun Upgrade, meant to enhance the scalability of the network as well as its efficiency, at the same time reducing transaction fees. The Dencun upgrade is regarded as the most notable event in Ethereum’s history since the Merge, and it’s expected to have a positive effect on the crypto world in the long run, leading to cheaper and faster payments and making the network more secure, preventing attackers from exploiting a weakness in validation and processing layers.
The bottom line
Ethereum is subject to more developments that aim to enhance the network’s scalability, security, and sustainability for daily use. However, it’s unknown when these upgrades will go live – some of them are expected to be completed in as little as six months, but others could take up to a decade; it’s all a matter of priority. Ethereum’s road to scalability isn’t an instantaneous one, but rather, it’s something that will take shape over a series of upgrades.