For developers creating solutions using Ethereum as a base, there is a substantial amount of functionality hosted on the Ethereum blockchain, as reported by Cointelegraph. The native currency of the Ethereum blockchain is called Ether (ETH), and it is used to pay for transactions on the Ethereum blockchain.
As per Cointelegraph, At a Bitcoin conference in Miami, Florida, in January 2014, Buterin introduced the world to the idea of the blockchain project, which is how Ethereum came to be known. Later that year, the project received money through an initial coin offering (ICO), selling ETH tokens worth millions of dollars in exchange for cash to use for project development. The asset sale sold over $18 million worth of ETH, paid for in Bitcoin, between July 22 and September 2, 2014.
Despite the fact that ETH coins could be bought in 2014, the Ethereum blockchain did not go live until July 30, 2015, so ETH buyers had to wait until the blockchain launched before they could transfer or spend their ETH. Why was the Ethereum blockchain initially created? One explanation is that the Ethereum blockchain offers greater development flexibility for the blockchain and its ecosystem.
The switch to PoS that was made in order to scale the network is a significant modification to the Ethereum blockchain. Over the years, a lot of projects have developed applications for the Ethereum blockchain. Even then, during the 2017 era of CryptoKitties, a digital collectible cat platformed by the Ethereum blockchain, the network had difficulties.
Decentralised finance (DeFi) projects built on Ethereum attracted a lot of attention in 2020 and 2021, which brought Ethereum’s scalability difficulties to the fore as high network fees hampered participants. Although it happens gradually, Ethereum’s transition to Eth2 and PoS attempts to scale the well-known blockchain, Cointelegraph stated.
(With insights from Cointelegraph)
Also read: What is Tokenomics and how does it work