Ethereum: From Digital Currency to Smart Contract Platform

Ethereum is a blockchain and software development platform created to do more than just transfer digital currency. Introduced in July 2015 by Vitalik Buterin and his fellow co-founders, Ethereum aims to develop smart contracts and decentralized applications (dApps).

The network has undergone significant changes since its inception, including the switch from a power-hungry Proof-of-Work (PoW) mining model to a more environmentally sustainable Proof of Stake (PoS) algorithm in 2022. This change has reduced energy consumption by over 99%.

Ethereum's tokenomics are unique, with no fixed maximum supply and a dynamic issuance system based on validator rewards and transaction fees. The balance between these two forces determines whether ETH becomes inflationary or deflationary over time.