Key Milestones in Ethereum’s Evolution

The journey of Ethereum commenced over a decade ago when its founder, Vitalik Buterin, a young visionary disillusioned by Bitcoin’s constraints, aspired to enhance blockchain technology. His goal was to transform blockchain into a “global computer,” allowing for decentralized applications with minimal reliance on human intervention.

Today, Ethereum has emerged as the second-largest cryptocurrency globally, supporting a robust ecosystem valued at over a trillion dollars. It is the platform of choice for major asset managers and serves hundreds of thousands of daily users across various networks.

Here are 11 pivotal moments in Ethereum’s history, along with significant future upgrades to anticipate.

The Birth of the Ethereum White Paper — 2013

Initially introduced to Bitcoin by his father, a Russian engineer who moved to Canada, Buterin began exploring cryptocurrency without the financial resources to engage in mining or investment. To support himself, he began writing for crypto blogs and earned payments in Bitcoin.

His notable intellect attracted Romanian Bitcoin aficionado Mihai Alisie, and together, they founded Bitcoin Magazine in 2012. By 2013, at just 19 years old, Buterin unveiled the Ethereum white paper, proposing a platform for “next-generation smart contracts and decentralized applications.” He explained the need for broader functionalities, comparing it to the evolution from calculators to smartphones.

Later, he was awarded $100,000 from the Peter Thiel Fellowship to pursue the development of Ethereum.

The Red Wedding — 2014

Ethereum faced internal conflicts early on, culminating in the notorious “Red Wedding.” A gathering of co-founders on June 7, 2014, in Zug, Switzerland, intended to formalize Ethereum’s transition to a profit-driven entity. However, disagreements regarding management styles and project contributions led to a critical decision point.

Buterin subsequently opted to transition Ethereum into a nonprofit foundation, parting ways with controversial figures in the co-founding team. Joe Lubin, another co-founder, later recounted the tensions and how they impacted Ethereum’s governance.

Initial Coin Offering (ICO) and Official Launch — 2014

Ethereum’s ICO in 2014 was crucial for raising capital and generating public interest. From July 22 to September 2, the ICO successfully attracted over $18 million in investments. On July 30, 2015, Ethereum and its native currency, ETH, officially launched at an initial price of $0.31, yielding extraordinary returns for early adopters.

The DAO Exploit and the Birth of Ethereum Classic — 2016

The hack of The DAO, a decentralized autonomous organization, marked a critical turning point for Ethereum. Over 3.6 million ETH was stolen, leading to a rapid decline in ETH’s market value. This incident polarized the Ethereum community into factions that argued over whether to maintain the blockchain’s record or to implement a rollback to recover the lost funds.

The decision ultimately led to a hard fork, creating two distinct chains: Ethereum (maintaining proof-of-stake) and Ethereum Classic (retaining proof-of-work).

CryptoKitties Overloads the Network — 2017

Launching in October 2017, CryptoKitties was a revolutionary non-fungible token (NFT) project that initially overwhelmed the Ethereum network. This platform allowed users to collect and breed virtual cats, leading to skyrocketing prices for some NFTs and notably congesting the blockchain. In response, developers implemented optimizations to enhance the network’s scalability.

DeFi Summer — 2020

The summer of 2020 marked a significant transformation for Ethereum, as decentralized finance (DeFi) protocols surged in popularity. The Ethereum network became the foundation for innovative financial activities, ranging from trading to lending, attracting a wave of new users eager to explore these opportunities.

During this period, notable protocols like Aave and Compound emerged as leaders in the DeFi sector, boasting substantial values locked and trading volumes.

Roadmap Revisions — October 2020

In October 2020, Buterin reshaped Ethereum’s development path, jettisoning the initial Eth 2.0 framework for a more adaptable rollup-centric approach. This new strategy aims to enhance scaling through layer-2 solutions rather than relying solely on monolithic sharding.

Transition to Proof-of-Stake: The Merge — September 2022

The successful completion of the Merge on September 15, 2022, represented a shift from the energy-intensive proof-of-work mechanism to a proof-of-stake framework. This transition reduced Ethereum’s energy consumption dramatically, signing a fundamental transformation in its operational mechanics.

Dencun Upgrade: Enhancing Scalability — March 2024

The Dencun upgrade, implemented on March 13, 2024, introduced significant Ethereum Improvement Proposals (EIPs), including EIP-4844. This reform focused on reducing transaction costs on layer-2 networks through a system that separates transaction data—a crucial step in Ethereum’s evolution.

A Major Institutional Endorsement — March 2024

On March 20, asset management giant BlackRock launched a tokenized fund on Ethereum, reinforcing the platform’s reliability. The fund, known as the BlackRock USD Institutional Digital Liquidity Fund, has since attracted considerable investment interest.

Spot Ether ETFs Launch — July 2024

On July 23, following prior SEC approvals, a set of spot Ether ETFs was launched, marking a milestone in Ethereum’s institutional adoption. Despite initial market reactions, these funds aim to capture a broader investor base moving forward.

Future Developments: Pectra, the Verge, and the Splurge

Upcoming upgrades such as Pectra will enhance the Ethereum Virtual Machine, enabling new functionalities for developers. Following this, the Verge, focused on state storage reformation, is also on the horizon, alongside a cleanup of outdated functionalities dubbed the Purge.

Collectively, these enhancements aim to streamline the Ethereum experience and foster further innovations within its ecosystem.