Ethereum emerged as the first programmable blockchain in 2015, revolutionizing the cryptocurrency landscape by introducing smart contract functionality. This innovation allowed developers to build and deploy decentralized applications (dApps) on the Ethereum network, significantly contributing to the adoption of blockchain technology. Its native cryptocurrency, Ether (ETH), has become the second-largest cryptocurrency by market capitalization, behind only Bitcoin.
Learn more about Ethereum nodes here from the GetBlock node provider.
What is Ethereum
The Ethereum network operates through a global network of computers called nodes, which collectively form the Ethereum Virtual Machine (EVM). This decentralized system executes smart contracts and processes transactions, enabling a wide range of applications from financial tools to games.
Users pay gas fees to execute transactions and smart contracts, incentivizing network participants to maintain and secure the blockchain.
Ethereum’s key innovations include:
- Introduction of smart contracts
- Creation of non-fungible tokens (NFTs)
- Development of decentralized finance (DeFi) applications
- Transition to Ethereum 2.0, improving scalability, security, and sustainability
These, however, aren’t all Ethereum features. Let’s look at its layer-2 solutions.
L2 chains
Layer 2 (L2) solutions are secondary frameworks built on top of the Ethereum blockchain (Layer 1) to enhance its throughput and reduce transaction costs. These solutions effectively offload some of the transactional burden from the main Ethereum network, allowing for faster and cheaper transactions.
Key features of Layer 2 solutions include:
- Utilization of smart contracts to manage off-chain interactions
- Periodic compression and submission of transactions to the main chain
- Significant reduction in transaction fees
- Enhanced transaction speeds
- Increased capacity for decentralized applications
Popular Layer 2 solutions for Ethereum include zero-knowledge (ZK) frameworks, optimistic rollups, and sidechains. The total value locked (TVL) in Ethereum Layer 2 solutions has grown significantly, surpassing $15 billion, demonstrating their critical role in Ethereum’s scalability efforts.
Getting an Ethereum node
An Ethereum node is a crucial component of the Ethereum network, allowing users to participate in the blockchain and access its features. Running an Ethereum node provides complete control over your participation in the network and access to all features of Ethereum’s decentralized applications (DApps) without relying on third-party services. However, as we’ll see, the usage of node providers like GetBlock can be much more efficient.
Setting up an Ethereum RPC
Setting up an Ethereum RPC (Remote Procedure Call) node allows developers to interact with the Ethereum blockchain programmatically. This process involves several steps and requires specific hardware and software requirements.
Ethereum RPC node requirements
To run an Ethereum RPC node, you’ll need:
- A computer with sufficient processing power and storage capacity
- Operating system: Windows, Mac, or Linux
Here are the minimum hardware requirements for a full Ethereum node:
- CPU: 4+ cores
- RAM: 16+ GB
- Storage: 1+ TB SSD
- Internet connection: 25+ Mbps
When all is set, one can deploy a node from the official website.
Deploying the node
To deploy an Ethereum RPC node:
- Install required software:
- Node.js and npm
- Truffle development framework
- Clone the Ethereum client repository (e.g., Go Ethereum) from GitHub:
- Build the node from the source
- Start the RPC node
- Monitor the node status
These activities involve multiple command-line interface (CLI) commands, so make sure to learn the documentation carefully.
Reaching the Ethereum API provider
While running your own Ethereum node provides full control and independence, it requires significant resources and technical expertise. An alternative is to use an Ethereum RPC node provider, such as GetBlock.
These services offer several benefits:
- Time and cost savings
- Reduced hardware and maintenance requirements
- Instant access to fully synced nodes
- High availability and reliability
- Support for multiple networks and node types
Using an RPC node provider allows developers to focus on building their applications without the overhead of managing infrastructure.
Ethereum future and development
Ethereum’s future looks promising, with ongoing developments aimed at improving its scalability, security, and sustainability. The transition to Ethereum 2.0, which includes the shift from a Proof-of-Work to a Proof-of-Stake consensus mechanism, is a significant step towards these goals.
The growing adoption of Layer 2 solutions is expected to play a crucial role in Ethereum’s scalability efforts. As these technologies evolve, they will enable new use cases and opportunities for developers, potentially leading to increased adoption of decentralized applications.
Ethereum’s strong developer community and continuous innovation in areas such as DeFi, NFTs, and decentralized autonomous organizations (DAOs) position it well for future growth. As the ecosystem matures, Ethereum is likely to remain a key player in the blockchain space, driving the development of decentralized technologies and applications.
