1. 🔧 What Is Ethereum?
Ethereum is the second-largest blockchain platform after Bitcoin in terms of market cap. Launched in July 2015, it’s designed not just for peer‑to‑peer value transfer, but as a robust framework for smart contracts and decentralized applications (dApps) . Built on the Ethereum Virtual Machine (EVM), it enables developers to deploy complex programmable agreements—spanning finance, gaming, NFTs, governance, oracles, and more.
In contrast to Bitcoin’s store‑of‑value focus, Ethereum catalyzed entire industries like DeFi (decentralized finance)—offering lending, borrowing, yield farming without intermediaries—and NFTs with ERC‑721 tokens. These developments cemented Ethereum as the foundational layer of web3 .
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2. ⚙️ Key Upgrades: From The Merge to Pectra
Ethereum has undergone several pivotal upgrades to enhance scalability, security, efficiency:
A. The Merge (Sep 15, 2022)
Transitioned Ethereum from energy‑intensive Proof‑of‑Work to greener, validator‑based Proof‑of‑Stake, slashing energy use by ~99% .
B. Shanghai / Shapella (Mar 2023)
Enabled withdrawals of staked ETH, unlocking massive validator exit flexibility .
C. Dencun (Mar 13, 2024)
Also called Deneb‑Cancun or Proto‑Danksharding. This upgrade introduced EIP‑4844 (“blobs”) to temporarily store data, reducing gas costs for Layer‑2 solutions and making them faster and cheaper .
D. Pectra (May 7, 2025)
The most recent upgrade delivered key improvements, including:
• EIP‑7251: Allows flexible validator staking, raising the ceiling from 32 ETH up to 2,048 ETH.
• EIP‑7702: Adds smart contract functionalities to externally owned accounts (EOAs).
• Additional features aimed at usability, scalability, and developer efficiency .
Pectra was activated on May 7, 2025, marking a major milestone in Ethereum’s maturation .
