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Friends outside the circle may have heard of it (perhaps it is the first time they have contacted it) but don’t know what it does? Most people in the industry should know about Ethereum, which is the prelude to a series of legendary stories. But few people know what Ethereum does and how it has changed the development of blockchain. In today’s article, I will give you a brief understanding of the huge energy brought by Ethereum. Please read 👇 The full name "Ethereum" in English (Ethereum) is a blockchain platform specially designed for smart contracts and decentralized applications (dApp). Here is a brief introduction for you:  The concept was proposed by Vitalik Buterin and others at the end of 2013. After crowdfunding in 2014, it was officially launched in July 2015. It wants to break through the limitations of Bitcoin and create a "world computer" that can carry more complex applications. Note: The computer here does not refer to a centralized computer  The Ethereum Virtual Machine (EVM) is Turing-complete, and developers can use programming languages such as Solidity. This flexibility creates a broad space for technological innovation, making Ethereum the preferred platform for building complex DApps. Bitcoin has built a decentralized value transfer system. On this basis, through smart contracts, blockchain applications can transcend the scope of simple digital currency and enter the 2.0 stage. ETH smart contract function: It uses the Ethereum Virtual Machine (EVM) to execute smart contracts. Developers can use Turing-complete programming languages such as Solidity to write contract code and set conditions. When the conditions are met, the contract will automatically execute, providing a technical foundation for applications such as DeFi and NFT. Smart contracts are code agreements that can be automatically executed according to preset conditions, which can reduce intermediate links, improve efficiency and transparency, allow developers to develop various decentralized applications (DApps), and comprehensively expand blockchain application scenarios. (Friends who don’t understand the EVM, DeFi and NFT mentioned here should follow me and I will bring you the details later) The Ethereum consensus mechanism initially adopted Proof of Work (PoW). In September 2022, the main network and the beacon chain merged, and it fully shifted to Proof of Stake (PoS). Verifiers need to stake at least 32 ETH to participate in block generation and transaction verification, which reduces energy consumption by about 99%. After Ethereum was upgraded in Prague on May 7, 2025, it increased from 32 ETH to 2048 ETH for a single validator at one time.  The role and supply of ETH: ETH is the "fuel" of the network. Users have to pay ETH as Gas fees to promote transactions or smart contract operations. It has no fixed supply limit, but the London hard fork in 2021 will add a fee destruction mechanism, and part of the basic transaction fees will be destroyed. Coupled with the fact that the issuance volume has dropped by more than 90% after switching to PoS, the supply of ETH may experience deflation at a certain stage. Main application areas: used for lending, trading, etc. in decentralized finance (DeFi). Well-known projects such as Uniswap and Aave are based on Ethereum. At the same time, according to standards such as ERC-721 and ERC-1155, it is widely used in NFT creation and transactions. Digital artworks, virtual game assets, etc. are often presented in the form of Ethereum NFT. Promote the development of decentralized finance (DeFi):  Ethereum is the cornerstone of the development of the DeFi ecosystem. Well-known DeFi projects such as Compound, Uniswap, and MakerDAO are all built on Ethereum. Financial services such as lending, trading, and issuance of stable coins are realized through smart contracts. It has given birth to a native financial paradigm, allowing lending without real estate mortgage and transactions without third-party custody, etc., building a new financial ecosystem that does not require permission and is highly transparent. Between 2020 and 2023, the total locked value of Ethereum DeFi soared from US$1 billion to over US$50 billion. NFT mainstreaming: NFT can make digital assets unique and verifiable. Ethereum has become the main NFT issuance and trading platform with its technical and ecological advantages. More than 70% of NFT transactions are completed within the Ethereum ecosystem. Early projects such as CryptoPunks used Ethereum to gain popularity for NFT, helping its widespread popularity in art, games, sports and other fields. Technology upgrade explores scalability solutions: Its technology upgrades to solve problems such as scalability and energy consumption provide an example for the blockchain industry. For example, by transforming from Proof of Work (PoW) to Proof of Stake (PoS), London's energy consumption was reduced by 99.95% after the upgrade. It also used technologies such as sharding and rollup to build a multi-layer expansion architecture and explore effective ways to improve throughput. At the same time, Pectra and Proto-Danksharding continue to be upgraded, and their scalability and user experience are constantly optimized. Today’s Ethereum content will be introduced to you here. In the future, we will bring you “decentralized finance”. This is the dividend of the times and a huge change that will change a generation. Friends who have ideas for investment in new fields can privately chat with wxnn1526 and let us discuss the future together... |
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