Ethereum

Ethereum is a global, open-source platform for decentralized applications. It is a decentralized blockchain platform that enables developers to build and deploy smart contracts and applications without central authority control. Unlike Bitcoin, which primarily functions as digital currency, Ethereum operates as a programmable global computer where developers can create any type of decentralized service.

Vitalik Buterin proposed Ethereum in 2013, and seven co-founders helped build it, including Gavin Wood, who created Solidity and the EVM technical specification, and Joseph Lubin, who founded ConsenSys. The project launched in July 2015 after raising over $18 million through crowdfunding.

The network operates through thousands of independent validator nodes that process transactions and execute smart contracts on the Ethereum Virtual Machine. Its transition to Proof of Stake in September 2022 reduced energy consumption by over 99%.

Smart contracts are self-executing programs written in Solidity that automatically carry out agreements when conditions are met, eliminating intermediaries like banks or brokers. Validators stake ETH as collateral to propose and validate blocks, earning rewards for honest participation while facing penalties for malicious behavior.

The EIP-1559 upgrade introduced a dynamic base fee mechanism that burns ETH with each transaction. This creates deflationary pressure during high network activity, when more ETH is burned than issued to validators.

Major milestones include the 2020 Beacon Chain launch, the 2021 London hard fork implementing fee burning, and the 2022 Merge to Proof of Stake.

Ether (ETH) serves multiple functions: paying transaction fees (gas), staking to secure the network and earn 3-5% annual yields, serving as collateral in DeFi protocols, and purchasing NFTs and digital assets.

Circulating supply is 120,682,685 ETH, with total supply also at 120,682,685 ETH. There is no fixed maximum supply. Supply dynamics instead depend on the balance between Proof of Stake issuance to validators and the EIP-1559 burn mechanism.

During periods of high network activity, more ETH can be burned than issued, creating deflationary pressure. During low activity, net issuance increases the supply.

Vitalik Buterin proposed Ethereum in 2013. Seven co-founders helped build it, including Gavin Wood, who created Solidity and the EVM technical specification, and Joseph Lubin, who founded ConsenSys.

The project launched in July 2015 after raising over $18 million through crowdfunding, rather than through venture rounds.

Ethereum's primary edge is its position as the largest blockchain developer community, with 906 pull-request contributors and 44,422 GitHub stars. It hosts over $14 billion in DeFi applications, giving it the deepest on-chain liquidity and application ecosystem among smart contract platforms.

The combination of the EIP-1559 burn mechanism and Proof of Stake staking yields creates a unique economic model among major Layer 1s. Institutional adoption has progressed further than most competitors, with SEC-approved spot Ethereum ETFs providing conventional brokerage access.

Ethereum operates as a programmable global computer where developers can create any type of decentralized service.