A Complete Guide to Ethereum in 2024

A blockchain is at the heart of the modern web3 landscape: Ethereal.

As the first blockchain to support smart contracts and therefore decentralized applications (dApps), x.com/ethereum” target=”_blank” rel=”noopener”>ethereum It revolutionized the potential of blockchain technology and today forms the solid core from which so many facets of the industry are derived: nfts, web3 games, DeFi and more.

Rather than resting on its laurels, ethereum has a dedicated development team that is always looking to push the boundaries of web3 technology even further, but what are these advancements? How has ethereum become a vital part of blockchain technology, and what should you know about its past, present, and future?

Here is our complete guide to ethereum in 2024.

What is ethereum?

ethereum is a creation of x.com/VitalikButerin” target=”_blank” rel=”noopener”>Vitalik Buterina talented programmer and co-founder of bitcoin Magazine, who conceived the idea of ​​a blockchain that could support decentralized applications in 2013.

Following crowdfunding efforts in 2014, Buterin, in collaboration with x.com/gavofyork” target=”_blank” rel=”noopener”>Gavin Wood, x.com/IOHK_Charles” target=”_blank” rel=”noopener”>Charles Hoskinson, x.com/diiorioanthony” target=”_blank” rel=”noopener”>Antonio Di Iorio and x.com/ethereumJoseph” target=”_blank” rel=”noopener”>Jose Lubin – launched the ethereum Layer-1 blockchain on July 30, 2015, with Ether (eth) as its operating token.

ethereum was the first blockchain that allowed developers to build applications dedicated to blockchain technology, kickstarting a boom period that catapulted the Web3 industry forward. eth quickly grew to become the world’s second-largest cryptocurrency (which it still holds today) and the operating core of the blockchain landscape we know today.

As development continued, ethereum became central to some of the most influential applications in our ecosystem today, such as OpenSea, Uniswap, and MakerDAO (now x.com/SkyEcosystem” target=”_blank” rel=”noopener”>Darling

Now in 2024, ethereum continues to focus on scalability, cost reduction, and decentralization, with a long-term roadmap that seeks to improve and safeguard the future of the blockchain landscape as a whole.

How does ethereum work?

ethereum's real innovation is the ethereum Virtual Machine (EVM), a Turing-complete system that allows developers to write smart contracts, enabling the development of blockchain-based applications. These applications are written in Solidity, a programming language dedicated to smart contracts.

The ethereum blockchain uses a fee structure to execute transactions. Each transaction requires a certain amount of computing power to complete, and the user must pay a gas fee (in eth) to cover the cost of using this power. The amount of gas required varies depending on the size of the transaction and how busy the ethereum network is at the time.

At the end of 2017, the popularity of x.com/CryptoKitties” target=”_blank” rel=”noopener”>Cryptokittens –one of the earliest blockchain games– slowed down ethereum and skyrocketed gas fees. Since then, ethereum has redoubled its efforts to improve speed, bolster reliability, and reduce fees; the transition from Proof-of-Work to Proof-of-Stake in September 2022 dramatically reduced ethereum’s environmental impact and laid the groundwork for the modern ethereum we see today.

Today, ethereum is a foundational blockchain for a wide range of nascent web3 industries, including finance, web3 gaming, decentralized social networking, supply chain management, and much more.

The History of ethereum

ethereum’s journey began in late 2013 when Vitalik Buterin published the ethereum whitepaper proposing a blockchain with a built-in programming language, and after gaining traction, coupled with an $18 million crowdfunding effort, the ethereum mainnet went live on July 30, 2015.

In 2016, a vulnerability was detected in the smart contract of x.com/the_dao_project” target=”_blank” rel=”noopener”>The DAO was exploited, resulting in a loss of $50 million worth of Ether. To rectify the situation, the community voted for a hard fork, leading to the creation of two separate blockchains: ethereum (eth) and x.com/eth_classic” target=”_blank” rel=”noopener”>ethereum Classic (ETC).

ethereum experienced severe congestion in late 2017 thanks to the popularity of CryptoKitties, which fueled the creation and popularity of dedicated layer 2 blockchains such as Polygon and Immutable, and served as inspiration for a new cohort of layer 1 blockchains, such as x.com/flow_blockchain” target=”_blank” rel=”noopener”>FlowAvalanche and Solana.

One of the most significant upgrades in ethereum history occurred in September 2022. “The Merge,” which moved ethereum from Proof-of-Work to Proof-of-Stake, reduced ethereum’s energy consumption by 99%, laid the groundwork for a new validation methodology, and was the first step in helping reduce gas fees, which at the time of writing, are among the lowest they’ve ever been.

ethereum’s last major upgrade, Dencun, took place in March 2024, with the goal of reducing fees on layer 2 networks. This is the latest upgrade aimed at boosting scalability, reliability, and user experience, future-proofing the industry and working towards an “ethereum 2.0” future.

In July 2024, ethereum became the second cryptocurrency for which the US SEC approved exchange-traded funds (ETFs), and ethereum ETFs exposed the blockchain and the eth cryptocurrency to large numbers of institutional investors and millions of ordinary people around the world.

As ethereum continues to innovate, its influence as a leader in blockchain technology and the digital economy will only grow. While the layer-1 environment will be more competitive than ever in 2024, ethereum remains firmly in the lead as the leading smart contract blockchain and will remain a cornerstone of the web3 industry for many years to come.