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Ethereum’s blockchain comprises a sequence of “blocks” filled with transactions. Each transaction reflects a change in the Ethereum network’s state, such as the transfer of ETH from one user to another, or the execution of a smart contract. Previously, miners used to validate these transactions and grouped them into blocks in a process known as mining. However, Ethereum recently transitioned from a proof-of-work mechanism to a proof-of-stake model, where validators now manage this process. A major upgrade to the Ethereum network, known as Ethereum 2.0, is currently underway and promises more transactions per second on the network, going from 15 transactions per second to handling tens of thousands of transactions per second. Experts expect Ethereum 2.0 to be released late in 2022.

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