Blockchain technology, originating from Bitcoin's underlying framework, enables direct peer-to-peer value representation and transfer without intermediaries, introducing tokens as digital value carriers. This innovation propels the internet from an "information web" to a "value web." However, broader adoption requires iterative upgrades. If Bitcoin symbolizes Blockchain 1.0, Ethereum emerges as its evolutionary successor—Blockchain 2.0.
Among numerous Bitcoin enhancements (altcoins, sidechains, etc.), Ethereum stands out as the most widely adopted improvement. By integrating smart contracts and token standards, Ethereum has fostered a thriving ecosystem, second only to Bitcoin in popularity. While software-wise Ethereum introduced smart contracts, its transformative impact lies in tokenization.
New projects now vie to become Blockchain 3.0, aiming to surpass Ethereum as the next-gen decentralized application (DApp) platform. The competition is just beginning.
Blockchain Evolution (Melanie Swan's Classification):
- 1.0: Currency (Bitcoin)
- 2.0: Contracts (Ethereum)
- 3.0: Applications (Emerging platforms)
Ethereum continues to evolve, potentially advancing toward Blockchain 3.0 as it expands its utility in DApp development. Its founder, Vitalik Buterin ("V神"), envisioned Ethereum as a smart contract and DApp platform from the outset.
Part 1: Smart Contracts and the DApp Platform
Vitalik’s Vision
In Ethereum’s whitepaper, Vitalik analyzed Bitcoin’s limitations for advanced applications:
- Non-Turing Complete Scripting: Bitcoin’s language restricts complex computations.
- Value-Blind UTXOs: Cannot fine-tune transaction outputs.
- Stateless Design: UTXOs lack multi-state functionality.
- Blockchain-Blindness: UTXOs ignore contextual blockchain data (e.g., timestamps).
Ethereum addresses these by offering:
- A new blockchain with Turing-complete programming (Solidity).
- Smart contracts for customizable asset transfers.
- Ethereum Virtual Machine (EVM) to execute contract code.
Use Cases
Ethereum supports:
- Financial Apps: Sub-currencies, derivatives, wills.
- Semi-Financial Apps: Computational bounties.
- Non-Financial Apps: Decentralized governance.
Part 2: Smart Contracts, Digital Assets, and ERC20 Tokens
Ethereum’s primary utility shifted from DApps to digital asset management via smart contracts. Key comparisons:
| Feature | Bitcoin | Ethereum |
|---|---|---|
| Core Use | Digital Cash | Digital Assets |
| Tokenization | Altcoins | ERC20/ERC721 Tokens |
| Fundraising | N/A | ICOs (2017 boom) |
ERC20 Standard
Proposed in 2015, ERC20 simplifies token creation via smart contracts, enabling:
- Fungible Tokens: Interchangeable assets (e.g., stablecoins).
- ICO Proliferation: Over 80,000 ERC20 contracts by 2018.
Regulatory Note: China banned ICOs in 2017 due to fraud risks, but ERC20 remains a technical milestone.
Ethereum’s Evolution
From digital cash (Bitcoin) to digital assets (Ethereum), blockchain technology now underpins complex financial instruments and ecosystems.
FAQs
1. How does Ethereum improve upon Bitcoin?
Ethereum introduces Turing-complete smart contracts, enabling programmable asset transfers and DApp development—unlike Bitcoin’s rigid scripting.
2. What are ERC20 tokens?
Standardized smart contract tokens on Ethereum, widely used for ICOs and representing fungible assets (e.g., utility tokens).
3. Why was Ethereum’s 2014 ICO significant?
It raised ~$18M in Bitcoin, funding Ethereum’s development and pioneering crypto-based crowdfunding.
4. What’s the difference between ERC20 and ERC721?
ERC20 tokens are interchangeable (like currencies), while ERC721 tokens are unique (like collectibles).
5. Is Ethereum considered Blockchain 2.0?
Yes. It transitions blockchain from currency (1.0) to programmable contracts (2.0), with 3.0 focusing on DApps.
👉 Explore Ethereum’s latest developments
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