A Technical Seminar Report

On
ETHEREUM

submitted in the partial fulfillment of the requirement for the award of degree.
Bachelor of Technology (B.Tech.)
in
Computer Science and Engineering,
2024-25

Submitted By

SHAIK AFREEN 21M61A0564

Under the Esteemed Guidance of

Mrs.N.Savitha
Asst.Professor

Department of Computer Science and Engineering

SWARNA BHARATHI INSTITUE OF SCIENCE & TECHNOLOGY
Accredited by NAAC A+, UGC- Autonomous
(Accredited by NAAC A+, Approved by AICTE, New Delhi, Affiliated to JNTUH)
Pakabanda Bazar, Mamatha Hospital Road, KHAMMAM-507002.
2024-2025
 Department of Computer Science and Engineering

CERTIFICATE
This is to certify that the Technical Seminar report entitled “ETHEREUM BLOCK CHAIN” that is

submitted by SHAIK AFREEN bearing Roll No 21M61A0564 in partial fulfillment for the award of

the Degree of Bachelor of Technology in COMPUTER SCIENCE AND ENGINEERING to the

Jawaharlal Nehru Technological University is a record of bona fide work carried out by him / her under

my guidance and supervision. The results embodied in this report have not been submitted to any other

University or Institute for the award of any degree or diploma.

Date:

(Internal Guide) Head of the Department

Mrs.N.Savitha (Dr. N. Srinivas Rao)
Asst.Professor
 ACKNOWLEDGMENT

With great pleasure I take this opportunity to express my heartfelt gratitude to all people who

helped in making this seminar work a grand success.

I express my sincere thanks to Sri. G.KRISHNA, Chairman, Swarna Bharathi Institute of

Science & Technology and Sri G. PRAVEEN KUMAR, Director , SBIT for their continuous care

towards our achievements.

First of all, I am highly indebted to Principal Dr. G.RAJA KUMAR for giving us the

permission to carry out this seminar.

I am grateful to Dr. N.SRINIVAS RAO Head of the department for the suggestions and

guidance given by him during the execution of this seminar work.

I express my gratitude to Mrs.N.Savitha (Asst.Professor) (Seminar Guide) for the

valuablesuggestions and guidance and encouragement to make this seminar a success.

I would like to thank the teaching and non-teaching staff of CSE Department for sharing their

knowledge with me.

Last but not the least, I remember my parents, without their blessings the seminar would not

have been a successful one

SHAIK AFREEN

HT NO.21M61A0564
 INDEX PAGE

S.NO TOPIC NAME PAGE NO.

1 INTRODUCTION 1-2

2 ETHEREUM 3-6
COMPONENTS

3 DECENTRALIZED 6
APPLICATIONS

4 SMART 7-8
CONTRACTS
5 ETHEREUM 9
VIRTUAL
MACHINE

6 SOLIDITY FOR 10-14

ETHEREUM

7 ETHEREUM 2.0 15-17

8 FUTURE OF 18
ETHEREUM
9 CONCLUSION 19

10 BIBLIOGRAPHY 20
 ABSTRACT

Ethereum is a decentralized blockchain platform that allows developers to build and run
smart contracts and decentralized applications (DApps). Launched in 2015, Ethereum
goes beyond simple cryptocurrency transactions by offering a programmable blockchain,
enabling automation and trustless execution of contracts without intermediaries. Its
native cryptocurrency, Ether (ETH), is used to fuel operations on the network.

Ethereum is the foundation for innovations like DeFi, NFTs, and DAOs, driving the
adoption of decentralized technologies. With the transition to Ethereum 2.0, which
introduces Proof of Stake (PoS) and sharding, Ethereum aims to become more scalable,
energy-efficient, and prepared for mass adoption in the future.

In summary, Ethereum is a revolutionary platform that has transformed blockchain

technology by enabling smart contracts, decentralized applications, and programmable
transactions. With the upcoming Ethereum 2.0 upgrade, it is set to become more scalable,
secure, and sustainable, cementing its position as a leading blockchain platform for the
future of decentralized innovation.
 INTRODUCTION

1. WHAT IS ETHEREUM

Ethereum is an open-source blockchain platform that allows for the creation of

decentralized applications (DApps). It was introduced in 2015 by Vitalik Buterin to
extend the capabilities of blockchain beyond cryptocurrency transactions, unlike Bitcoin,
which is primarily used for digital payments.

Ethereum offers a Turing-complete programming language called Solidity, which means

it can execute a wide range of computational tasks. This programming flexibility enables
the development of complex decentralized applications that run on the blockchain
without central authority. Ethereum’s native cryptocurrency, Ether (ETH), is used to
compensate participants (miners or validators) who maintain the network by validating
transactions.
By using smart contracts, Ethereum enables the automatic execution of contract terms
without the need for an intermediary, providing the foundation for decentralized
applications and services. This ability to create programmable, self-executing contracts
has made Ethereum the leading platform for decentralized finance (DeFi), gaming, and
governance.

1
 1.1 Why Ethereum Over Bitcoin?

Although Bitcoin is the most well-known blockchain, it is primarily a cryptocurrency

designed for secure, decentralized transactions. Ethereum, on the other hand, was
designed from the start to be programmable, enabling the creation of applications that
can execute complex logic.

While Bitcoin is considered the first decentralized digital currency, its functionality is
limited to simple transfers of value between participants. Bitcoin’s scripting language is
very restricted, and it doesn’t support complex applications or contracts. Ethereum, on
the other hand, was built with Turing completeness, meaning it can execute a wider
variety of instructions.

 Smart Contracts: Bitcoin can only handle predefined transactions, while

Ethereum supports smart contracts—self-executing contracts where the
conditions of the agreement are embedded in code.

 Use Cases: Bitcoin is primarily used for payments and store of value, while
Ethereum supports a wide range of applications, including decentralized finance
(DeFi), non-fungible tokens (NFTs), supply chain management, and more.

 Consensus Mechanism Evolution: Ethereum is transitioning from a proof-of-

work (PoW) to a proof-of-stake (PoS) consensus mechanism to reduce energy
consumption and improve scalability. Bitcoin remains reliant on the energy-
intensive PoW model.

 Programmability: Bitcoin’s scripting language is very limited, supporting only

basic functions such as multi-signature transactions. Ethereum’s Solidity
language is Turing-complete, meaning it can implement any computational
logic.

2
 2. ETHEREUM COMPONENTS

2.1 Ethereum Nodes

Ethereum nodes are the backbone of the network, responsible for maintaining and
validating the blockchain. These nodes differ in their functionality and storage
requirements, and each type of node plays a unique role in the Ethereum ecosystem.

 Full Nodes: Full nodes store the entire blockchain, verifying all transactions and
blocks from the genesis block to the current state. They provide the highest
security because they independently validate transactions rather than relying on
other nodes. Full nodes are essential for the decentralization of the Ethereum
network since they do not depend on any external parties for validation.

 Light Nodes: Light nodes store only block headers (summaries of the
blockchain’s state) and rely on full nodes for transaction validation. They require
significantly less storage space and computational power, making them more
accessible for users with limited resources. However, light nodes do not offer the
same level of security as full nodes since they cannot independently verify all
transactions.

 Archive Nodes: Archive nodes store every state and event from the blockchain’s
entire history. These nodes are used mainly for research, data analysis, or
debugging because they provide access to historical data. However, they require
vast amounts of storage, often measured in terabytes, which makes them
impractical for most users.

2.2 Ethereum gas

Gas is a unit of measure used to calculate the computational effort required to execute
operations on the Ethereum network. Gas is necessary to prevent abuse of the network
and to compensate miners or validators who maintain and secure the blockchain.

When a user sends a transaction or deploys a smart contract, they must specify a gas
limit—the maximum amount of gas they are willing to spend. Each operation, whether a
simple calculation or a contract deployment, has a specific gas cost. For example:
3
 Ethereum transactions and smart contracts vary in complexity, and gas is used to
calculate how much computational power is needed for each specific task. In simple
terms:
 Gas is like fuel for the Ethereum network. It is used to perform operations.

 A basic operation like addition might cost 3 gas.

 More complex operations, such as deploying a smart contract or interacting with

another contract, require more gas, depending on the complexity of the task.

 Users pay gas fees in Ether (ETH), the native cryptocurrency of Ethereum, to get
their transactions processed by miners (or validators).

2.3 Purpose of Gas

Ethereum gas serves three main purposes:

1. Preventing Spam and Network Abuse:

o Every transaction and operation on Ethereum requires gas, which prevents bad
actors from overloading the network with excessive or malicious transactions.
o By attaching a cost to each action, gas ensures that computational resources are
allocated properly, and only legitimate transactions are processed.
2. Compensating Miners/Validators:
o In Ethereum 1.0 (Proof of Work), miners validate and add transactions to the blockchain
by solving complex cryptographic puzzles. Miners are compensated with gas fees paid
by users to perform computations.
o In Ethereum 2.0 (Proof of Stake), validators will take over this role, and gas fees will
similarly be used to compensate them for validating transactions and securing the
network.
3. Prioritizing Transactions:
o The gas system allows users to specify how much they are willing to pay for their
transactions. Transactions with higher gas fees are processed faster, especially when the
network is congested.
o This system helps prevent bottlenecks by enabling prioritization of transactions based on
their gas price.

2.4 How Does Gas Work?

Gas operates as a separate unit from Ether (ETH). While users pay in Ether for their
transactions, gas itself is a distinct unit used to measure the computational cost of actions
on the Ethereum network. Here's how the system works:

 Gas Limit: Every transaction has a gas limit, which is the maximum amount of
gas the user is willing to pay for the transaction. This limit ensures that the
transaction does not consume unlimited resources. For instance, setting a gas
limit of 21,000 gas ensures that the transaction will not consume more than that.

 Gas Price: The gas price determines how much a user is willing to pay per unit of
gas in Gwei (a denomination of Ether). One Gwei is equal to 0.000000001
4
 ETH(1Gwei = 10^-9 ETH). Users can set the gas price higher to prioritize their
transactions, especially during times of high network congestion.

Example: If the gas limit is 21,000 and the gas price is 100 Gwei, the total gas fee would
be:
Total gas fee = Gas limit × Gas price
= 21,000 gas × 100 Gwei
= 2,100,000 Gwei
= 0.0021 ETH

What is "gwei" or "wei", and how do they relate to ETH?

“Wei” is the smallest unit of Ether, where 10¹⁸ Wei represents 1 Ether. One gwei is 10⁹
wei, and there are 10⁹ gwei per Ether.

5
 3.DECENTRALIZED APPLICATIONS

3.1 What is a DApp?

A Decentralized Application (DApp) is an application that runs on a peer-to-peer

network, such as Ethereum, rather than a centralized server. DApps rely on smart
contracts to handle their back-end logic and store their data on the blockchain, making
them transparent, tamper-resistant, and autonomous.

Key features of DApps:

 Decentralization: DApps operate on a distributed blockchain network, removing

reliance on a single entity for operation.

 Open-source: Many DApps are open-source, meaning anyone can inspect the code
and contribute to its development.

 Incentive Structure: Many DApps have their own tokens that incentivize users and
developers to participate in the network.

 Autonomy: Once deployed, DApps continue to run without requiring human

intervention. They rely on the blockchain’s consensus mechanism for governance and
execution.

DApps are used in a variety of fields:

 Decentralized Finance (DeFi): Applications like Uniswap allow users to trade

cryptocurrencies directly with each other without the need for intermediaries.

 Games: Games like Axie Infinity use DApps to create decentralized game worlds
where players own in-game assets as NFTs.
 Governance: Decentralized Autonomous Organizations (DAOs) use DApps to
manage decision-making processes transparently on the blockchain.

6
 4.SMART CONTRACTS

4.1 what is smart contracts?

Smart contracts are self-executing contracts where the terms of the agreement between
buyer and seller are directly written into lines of code. They automatically execute
actions when predefined conditions are met. For example, a smart contract could
automatically transfer funds between two parties once certain criteria, like delivery of
goods, are verified.

Smart contracts were first conceptualized by Nick Szabo in 1993, but Ethereum made
them a reality by integrating them into the blockchain. Smart contracts offer several
advantages:

 Trustless Execution: Once deployed, smart contracts automatically execute their terms
without the need for human intervention or trusted intermediaries.

 Transparency: Since smart contracts are deployed on a public blockchain, anyone can
verify their execution, providing full transparency.

 Immutability: Once deployed, smart contracts cannot be changed. This ensures that
the terms of the contract are enforced exactly as written, without the risk of fraud or
manipulation.

However, smart contracts are also vulnerable to bugs or exploits if they are poorly
coded, which can lead to significant losses. For example, the DAO Hack in 2016
resulted in the loss of over $50 million worth of Ether due to vulnerabilities in the
DAO’s smart contract.

4.2 How Do Smart Contracts work ?

The vast majority of smart contracts are built (and issued) on the smart network
specifically, the ethereum network.

Ethereum is a “smart” crypto-powered network - a decentralized (no single authority-

possessing) global node of computers, if you will. On it, people are able to create
various applications, including smart contracts.

Namely, on Ethereum, smart contracts are built with the help of Solidity - a programming
language that was specifically designed for developers working with the Ethereum
network. These developers receive the criteria for a smart contract (for example, “if
Sam pays me $10, I will send Sam the article”), and then create it by using Solidity.
Essentially, a smart contract is basically an “IF something happens, THEN do
this” function.

When a smart contract is created, it needs to be deployed on the network. Once that
happens, the contract becomes active, and the terms of the contract can be executed.

7
 smart contracts work in an automatic manner. This means that, once they’re deployed,
developers won’t need to add or change anything else - if the terms of the contract are
met, it will perform its intended function.

8
 5. ETHEREUM VIRTUAL MACHINE (EVM)

The Ethereum Virtual Machine (EVM) is the decentralized, globally distributed virtual
machine that executes smart contracts and DApps on the Ethereum blockchain. The
EVM is responsible for running the bytecode generated from Solidity contracts and
ensures that all computations happen in a consistent manner across the network.

The EVM acts as the "world computer," where decentralized applications are executed. It
operates in a completely isolated environment, meaning that the code running inside the
EVM does not have access to external systems for security reasons.

Key aspects of the EVM:

 Isolation: Each smart contract and DApp runs in its own isolated environment,
preventing them from affecting the rest of the system.

 Deterministic: The EVM ensures that the outcome of every computation is the
same, regardless of which node in the Ethereum network processes the transaction.

 Gas Management: The EVM tracks gas consumption during the execution of
smart contracts to prevent infinite loops or excessive resource usage.

The EVM is crucial to the Ethereum network’s functionality, as it ensures that all smart
contracts and decentralized applications execute predictably and securely.

9
 6.SOLIDITY FOR ETHEREUM

Solidity is a high-level, object-oriented programming language designed specifically for

creating and deploying smart contracts on the Ethereum blockchain. As the primary
language used in Ethereum development, Solidity allows developers to write smart
contracts that facilitate and automate the execution of agreements, transactions, and
decentralized applications (DApps). Solidity was designed to be similar to other widely
known programming languages like JavaScript, Python, and C++, making it easier for
developers familiar with these languages to learn.

Key Features of Solidity

1. Turing Complete Language: Solidity is Turing complete, meaning it can perform

any computation given enough resources. This makes it versatile enough to handle
complex business logic for smart contracts.

2. Statically Typed: Solidity is a statically typed language, meaning data types for
variables must be defined before compilation. This helps in error checking and
validation during the contract's execution.

3. Inheritance: Solidity supports inheritance, which allows smart contracts to inherit

features from other contracts. This enables code reuse and modularization, making
contracts easier to maintain.

4. Libraries and Interfaces: Solidity provides libraries and interfaces to create modular
and reusable code. Libraries allow you to group functions and reuse them, while
interfaces define the structure of a contract without implementation, enabling
interaction with other contracts.

5. Events: Solidity contracts can emit events, which can be listened to by external
applications to trigger actions. For example, a smart contract could emit an event
when a transaction is successfully completed.

6.Gas Optimization: Solidity enables developers to optimize smart contracts to use

minimal gas, reducing transaction costs on the Ethereum network.

6.1 Solidity compiler

When you write a smart contract in Solidity, it is written in a high-level, human-readable

language. However, to deploy and execute the contract on the Ethereum blockchain, this
Solidity code must be compiled into bytecode that the Ethereum Virtual Machine (EVM)
can understand and execute. Along with bytecode, the Solidity compiler also generates
an Application Binary Interface (ABI), which acts as a bridge between external
applications (such as decentralized applications or wallets) and the deployed smart
contract.

10
 6.1.1 Byte code

Bytecode is the low-level code that represents the logic of the smart contract and is
executed by the EVM. After Solidity code is compiled, the compiler generates a
sequence of opcodes (operation codes) that form the bytecode, which the EVM can run.

Purpose of byte code

 It is the executable form of the smart contract.

 It contains instructions for the EVM, telling it what operations to perform (such as
adding numbers, sending Ether, or modifying contract state).

 It ensures that the contract can be executed across all Ethereum nodes, maintaining
the decentralized nature of the network.

Bytecode Structure:

 Constructor Bytecode: This part of the bytecode is executed only once, when the
contract is deployed to the Ethereum network. The constructor sets the initial values
and performs any setup required for the contract.

 Runtime Bytecode: This is the part of the bytecode that remains on the blockchain
after deployment. This is the "executable" portion that runs when users interact with
the contract.

11
 6.1.2 Application Binary Interface (ABI)

The ABI is a critical part of smart contract development and interaction. It provides the
contract's interface, allowing external users or applications to interact with the contract
by calling its functions. The ABI is a JSON-encoded structure that outlines the methods
and data types used by the contract.

Purpose of ABI:

 The ABI allows external users (via DApps, wallets, etc.) to communicate with the
smart contract without needing to understand the underlying bytecode.

 It provides a definition of the contract’s functions, input parameters, output types,

and events. This ensures that when a user wants to call a contract function, the
transaction is formatted correctly.

 It makes the contract interoperable with different platforms (such as web3.js, Truffle,
and other Ethereum libraries).

Interaction of ABI and Bytecode

Deployment: When a contract is deployed, the bytecode is stored on the blockchain,

while the ABI remains external to the blockchain. The ABI is used by developers and
users to interact with the contract.

Function Calls: When you interact with a smart contract (for example, calling the set()
function in the Simple Storage contract), your transaction uses the ABI to format the
12
 function call. The ABI ensures that the correct function is called with the correct
parameters.

Events: The ABI also describes events emitted by the contract. For example, if the
contract emits an event when the set() function is called, external applications (such as a
front-end DApp) can listen for this event and react to it (e.g., by updating the UI).

6.2 Solidity Compiler Methods

6.2.1 Remix IDE

Remix IDE is a web-based integrated development environment (IDE) for writing,

compiling, and deploying Solidity contracts. It is one of the easiest and most accessible
tools for developers who are just starting with Solidity.

Key Features:

 No installation needed: It runs directly in your browser, so there's no need to install

any software locally.

 Immediate feedback: Remix automatically compiles your Solidity code in real-time

and provides instant feedback on errors or warnings.

 Contract interaction: Remix includes built-in tools for testing and interacting with
deployed contracts.

 Plugin support: Supports various plugins to extend functionality, such as testing

tools, gas estimators, and security analyzers.

How to Compile Solidity Code in Remix:

1. Open Remix IDE in your browser: https://remix.ethereum.org.

2. Create a new Solidity file (with a .sol extension).

3. Write your smart contract code in the editor.

4. The Solidity code is compiled automatically, and you can check the Compile tab
for errors, warnings, and the resulting bytecode and ABI.

5. After successful compilation, deploy the contract to the blockchain or a test

network using Remix’s deployment tools.

Advantages:

1. Simple and easy-to-use: Great for beginners and prototyping.

2. Real-time feedback: Automatically compiles the code as you write it.
3. No local environment setup: No need for local installations or configuration, as
everything runs in the browser.

13
 6.2.2 Solidity Compiler (solc) - Command Line Interface (CLI)

The Solidity Compiler (solc) is the official command-line compiler for Solidity. It is a
more powerful tool for developers who prefer compiling their contracts from the
terminal. It gives full control over the compilation process and can be integrated into
build systems.

There are two versions of solc:

 solc (C++ version): The most common and widely-used version.

 solc-js: A JavaScript-based version for Node.js environments, which is slower but

easier to integrate into JavaScript-based projects.

Solidity Compiler in JavaScript (solc-js)

For Node.js environments, solc-js is a JavaScript version of the Solidity compiler. This
version is slower than the native C++ version but is often used in JavaScript-based
development environments like Truffle or Hardhat.

Advantages:

Full control: Offers fine-grained control over the compilation process.

Integrates with build systems: Works well with makefiles or continuous integration
tools.

Efficient: Faster and more efficient than using web-based IDEs like Remix, especially
for large projects.

6.2.3 Truffle Framework

Truffle is a popular Ethereum development framework that helps automate various tasks
related to smart contract development, including writing, compiling, testing, and
deploying contracts. It uses solc under the hood for compiling Solidity contracts.

Advantages

Node.js Integration: Works well in Node.js environments and can be easily

integrated into JavaScript projects.

Used by frameworks: Commonly used by development frameworks like Truffle and

Hardhat.

Cross-platform: Works on any platform that supports Node.js.

14
 7.ETHEREUM 2.0

Ethereum 2.0, also known as Eth2 or Serenity, is a major upgrade to the Ethereum
blockchain designed to improve the network's scalability, security, and sustainability.
The primary goal of Ethereum 2.0 is to address the limitations of Ethereum 1.0, such as
high gas fees, slow transaction times, and the environmental impact of its Proof of Work
(PoW) consensus mechanism. Ethereum 2.0 introduces key innovations like Proof of
Stake (PoS), Sharding, and The Beacon Chain to enable the Ethereum blockchain to
scale while maintaining decentralization and security.

7.1 Key Features of Ethereum 2.0

 Proof of Stake (PoS): One of the most significant changes in Ethereum 2.0 is the
transition from Proof of Work (PoW) to Proof of Stake (PoS). Under PoS, validators
replace miners and are responsible for validating transactions and creating new
blocks.

 In PoS, validators are chosen to propose a new block based on the amount of Ether
(ETH) they have staked, meaning they must lock up ETH in the network as collateral.
The more ETH a validator stakes, the higher their chances of being selected to
validate a block.

 This mechanism removes the need for energy-intensive mining, making Ethereum
more environmentally friendly. Unlike PoW, which requires solving complex
cryptographic puzzles, PoS relies on economic incentives to maintain network
security.

 Validators earn rewards for proposing and validating blocks but risk losing their
staked ETH if they act maliciously or fail to validate correctly (this is called
slashing).

15
  Sharding: Sharding is another fundamental feature of Ethereum 2.0. It is a scalability
solution that divides the Ethereum blockchain into multiple smaller chains, known as
shards. Each shard can process its own transactions and smart contracts, which
increases the overall capacity of the network.

 Sharding allows Ethereum to process many transactions in parallel instead of having

all nodes process every transaction as in Ethereum 1.0. This is crucial for improving
the network's transaction throughput and reducing congestion.

 The Ethereum network will be divided into 64 shards, each functioning

independently, but securely interacting with the main chain (Beacon Chain). This will
significantly increase the number of transactions that can be processed
simultaneously.

 The Beacon Chain: The Beacon Chain is the heart of Ethereum 2.0 and was
launched in December 2020 as part of Phase 0. It introduces the Proof of Stake
mechanism and manages the coordination of validators across the network.

 The Beacon Chain is a separate chain from the Ethereum 1.0 mainnet and
currently runs parallel to it. It is responsible for managing validator activities
such as staking, block proposals, and rewards distribution.

 It acts as the central coordination layer for the Ethereum 2.0 network, ensuring
that all shards remain synchronized and secure.

16
 Energy Efficiency: One of the main criticisms of Ethereum 1.0 is its reliance on the
energy-intensive Proof of Work consensus mechanism, which is similar to Bitcoin’s
mining process. Ethereum 2.0’s shift to Proof of Stake dramatically reduces the
network's energy consumption.
 PoW requires high-powered machines to solve complex cryptographic puzzles,
leading to high energy consumption. In contrast, PoS does not require vast amounts
of computational power, as validators are selected based on the amount of ETH they
stake, making it far more energy-efficient.
 This change could reduce Ethereum’s energy consumption by up to 99%, aligning
Ethereum with growing concerns over environmental sustainability in the blockchain
industry.

Phases of Ethereum 2.0

Ethereum 2.0 is being deployed in multiple phases to ensure a smooth upgrade while
maintaining the integrity and security of the network. Here are the primary phases of
Ethereum 2.0:

Phase 0: The Beacon Chain (Launched in December 2020)

In Phase 0, the Beacon Chain ran alongside Ethereum 1.0 but did not process
transactions or execute smart contracts. Its main role was to lay the foundation for future
upgrades and coordinate the validators.

Phase 1: Sharding (Expected in 2024)

Phase 1 will introduce sharding, allowing the Ethereum blockchain to be split into 64
parallel chains (shards). Each shard will be able to process its own transactions,
improving the network’s scalability.

7.2 Benefits of Ethereum 2.0

1. Scalability: Ethereum 2.0 will be able to handle a much larger number of

transactions than Ethereum 1.0. Sharding will allow Ethereum to process thousands
of transactions per second (TPS) instead of the current 15-30 TPS. This will alleviate
network congestion and reduce transaction fees.

2. Security: With the Proof of Stake model, Ethereum 2.0 introduces enhanced security
mechanisms. Stakers have a financial incentive to act honestly, as they risk losing
their staked ETH if they behave maliciously. Additionally, the Beacon Chain will
coordinate validators across shards, ensuring a secure and synchronized network.

3. Energy Efficiency: Ethereum 2.0’s move to Proof of Stake is a massive step towards
energy efficiency. By eliminating the need for energy-intensive mining, Ethereum 2.0
is expected to consume 99% less energy compared to Ethereum 1.0, making it a
much more environmentally friendly network.

4. Reduced Gas Fees: With improved scalability through sharding, Ethereum 2.0 will
alleviate network congestion, potentially leading to lower gas fees.

17
 8.THE FUTURE OF ETHEREUM

As Ethereum transitions to Ethereum 2.0, it is positioned to become the most scalable,

secure, and sustainable smart contract platform in the world. Ethereum’s impact on the
broader blockchain ecosystem has already been transformative, leading the charge in
areas such as DeFi, NFTs, DAOs, and decentralized applications. With Ethereum 2.0, the
network will be capable of handling the next generation of decentralized applications and
services, paving the way for mass adoption and mainstream usage.

Moreover, Ethereum 2.0’s focus on energy efficiency will alleviate many concerns over
the environmental impact of blockchain technology, allowing Ethereum to continue
evolving as the foundation for decentralized finance, digital assets, and decentralized
governance without compromising on its commitment to sustainability.

18
 9.CONCLUSION

In conclusion, Ethereum is not just a technology but a platform that represents the
promise of a decentralized, transparent, and open financial system. Its unique approach
of supporting programmable money, coupled with a vast array of decentralized
applications, has cemented its place as the most important blockchain ecosystem after
Bitcoin. With the upcoming Ethereum 2.0 upgrade, the network is set to overcome its
current limitations and become even more powerful, scalable, and secure, ushering in the
next era of blockchain innovation.

Ethereum’s roadmap extends far beyond just technological improvements—it is an

evolution that seeks to democratize finance, ownership, governance, and access to
information for people around the world. As the blockchain continues to mature,
Ethereum will likely remain at the forefront of this technological revolution.

Ethereum has already transformed the digital economy and continues to pave the way for
a more decentralized and open internet. With its upcoming upgrades, Ethereum is poised
to maintain its dominance in the blockchain space, supporting the next generation of
decentralized solutions and enabling a future where trustless systems and autonomous
applications become the norm. Ethereum’s potential is vast, and its evolution will
continue to shape the future of technology, finance, and governance.

19
 BIBLIOGRAPHY

Buterin, Vitalik. "Ethereum White Paper: A Next-Generation Smart Contract and

Decentralized Application Platform." Ethereum.org, 2013.

https://ethereum.org/en/whitepaper/

Wood, Gavin. "Ethereum: A Secure Decentralized Generalized Transaction Ledger."

Ethereum Yellow Paper, 2014.

https://ethereum.github.io/yellowpaper/paper.pdf

Antonopoulos, Andreas M., and Gavin Wood. Mastering Ethereum: Building Smart
Contracts and DApps.
O'Reilly Media,
2018.
https://www.oreilly.com/library/view/mastering-ethereum/9781491971932/

Ethereum Foundation. "Ethereum Developer Documentation."

Ethereum.org, regularly updated.

https://ethereum.org/en/developers/docs/

Beiko, Tim. "The Ethereum 2.0 Roadmap."

Ethereum.org, 2021.

https://ethereum.org/en/eth2/

Consensys. "What is Ethereum?"

Consensys.net, 2020.

https://consensys.net/knowledge-base/ethereum/

Tapscott, Don, and Alex Tapscott. Blockchain Revolution: How the Technology Behind
Bitcoin and Ethereum is Changing the World.
Penguin Books, 2016.

https://www.penguinrandomhouse.com/books/311952/blockchain-revolution-by-don-
tapscott-and-alex-tapscott/

Ethereum Foundation. "Understanding Gas, Transactions, and Fees in Ethereum."

Ethereum.org, 2020.

https://ethereum.org/en/developers/docs/gas/
Ethereum Developers. "Exploring Ethereum's Smart Contracts and DApps."
Ethereum.org, 2021.
https://ethereum.org/en/developers/docs/smart-contracts/

20