Ethereum Translated To Concrete

Ethereum is the most popular blockchain when it comes to building dApps (decentralized applications), DAOs (decentralized autonomous organizations) or DeFi (decentralized finance) platforms. All of these innovations were made possible by Ethereum's infrastructure and the fact that it is open-source. In other words, anyone with the necessary knowledge can build one of the mentioned solutions on this network.

Since its public launch in July 2015, Ethereum has become the benchmark for thousands of developers around the world. Half of all dApps currently on the market are built on the Ethereum blockchain. There are over 600,000 active users using all these dApps, and Ethereum adoption is constantly growing.

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Incidentally, Ethereum is also the most important blockchain after Bitcoin and has been in the background for years, despite the fact that other blockchains have started to offer similar services.

The success of Ethereum is due on the one hand to the fact that it was the first blockchain to come up with these ideas, and on the other hand it is due to the vision of co-founder Vitalik Buterin and the team of developers.

The use cases of these dApps built on Ethereum are diverse: web browsers, decentralized credit services, financial exchanges, etc. After all, the DeFi sector is booming, and digital assets valued at many billions of dollars are locked into various protocols that are part of this ecosystem.

Even though some dApps are similar to traditional web apps, they are able to operate in a peer-to-peer fashion, which eliminates the need for any central authority. This is certainly a good reason why all these decentralized applications have appeared like 'mushrooms after the rain'.

All these use cases of the Ethereum network - whether we are talking about dApps, DAOs or DeFi platforms, require the storage of a large amount of data on the blockchain, and not infrequently, the popularity of some of them has led to network congestion ( the most famous case being probably that of CryptoKitties in November 2017).

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The more Ethereum expands its reach, the more the current consensus mechanism (Proof-of-Work) is under immense pressure and makes it increasingly necessary for the network to switch to another consensus mechanism (Proof-of-Stake) in order to solve this scalability problem.

Thus, Ethereum developers are working to make the transition to a new platform, Ethereum 2.0. This will be released via a multi-stage update package called Serenity. After many years of testing, development, and After several years of development, testing, and speculation, Ethereum 2.0 execution start with Phase 0 of Serenity updates and the December 2020 release of the Ethereum 2.0 Beacon Chain.

In conclusion, we can say that the Ethereum network is "a magnet for innovation", currently attracting the most developers compared to all other networks. The flexible way in which you can program in this network is again a determining factor why so many developers or entrepreneurs choose it. It allows not only the reinvention of old business models, but also the birth of new, decentralized ones. Ethereum 2.0 has every chance to make the idea of ​​a highly decentralized Internet a reality.