My crypto learning journey #4 – Ethereum ( $ETH )
Founded in 2015 by Vitalik Buterin (along with co-founders like Gavin Wood, Charles Hoskinson, Anthony Di Iorio, and Joseph Lubin), Ethereum was created as a blockchain platform for programmable smart contracts, enabling decentralized applications, NFTs, and DeFi to flourish beyond just digital money.
Quick Facts:
- Token Name: Ethereum (ETH)
- Launch Date: July 30, 2015
- Consensus Mechanism: Originally PoW; transitioned to Proof of Stake (PoS) in September 2022.
- Circulating Supply (Aug 2025): ~120.71 million ETH
- Total Supply: Dynamic (no fixed cap)
What Makes Ethereum Stand Out?
1. Pioneer of Smart Contracts & dApps
Ethereum introduced programmable contracts—enabling the creation of dApps, decentralized finance protocols, NFTs, DAOs, and more.
2. Eco-Upgrades via The Merge
The transition to PoS in September 2022 slashed energy usage by over 99%, moving Ethereum from mining-intensive to environmentally sustainable.
3. Deflationary Supply Dynamics
With Ethereum’s burn mechanism and reduced block issuance post-Merge, net supply has been deflationary.
4. Developer-Friendly Ecosystem & Scaling
Ethereum’s EVM supports Solidity and many languages. Its L2 solutions—like Arbitrum and Optimism—boost throughput and lower fees.
5. Root of DeFi and NFTs
Major DeFi protocols and NFT ecosystems originated on Ethereum, cementing its position as the backbone of Web3.
Real-World Analogy: If Bitcoin is “digital gold,” then Ethereum is “digital oil” that fuels decentralized apps and, services across the blockchain ecosystem.
Real-World Use Cases
- DeFi Platforms: Borrowing, lending, yield farming
- NFT Marketplaces: OpenSea, Rarible, Art Blocks.
- DAOs & Governance Tools: On-chain communities.
- Tokenization: Security tokens, RWAs, stablecoins, and more.
- Scalability Upgrades: Proto-danksharding via Dencun and future optimizations
