fixed supply of 21,000,000 coins, Ethereum had no upper cap in

supply.

In year 2021, Ethereum started its process of moving from Proof of

Work to Proof of Stake with the help of sharding. This transition

would occur in many stages and ultimately would lead to a very high

scalability and low transaction fees. Altair, Ethereum 2.0’s first hard

fork, is expected to come into effect by the end of 2021, reducing

Ethereum’s power consumption by 99.9%

2.2 Transaction fees

The Ethereum network runs on its native cryptocurrency called Ether

that is available in most of the crypto exchanges in the world. The

current average transaction fee on the Ethereum network is close to

0.0008 Ethers per transaction (i.e., almost $3 USD) which is pretty

high. Most traders and investors communicate in terms of Ethers,

whereas when it comes to the Ethereum network, the consumption

happens in terms of gas that determines how expensive a

transaction is from its computation requirements.

2.3 L2 Solutions

Since its launch in mid 2015, the number of people participating in

the Ethereum network has grown exponentially. This crazy rush led

to an extremely slow network and high price for the transaction fees

on the Ethereum network. Hence, in order to match the scaling

needs and lowering transaction fees on Ethereum, different L2

solutions such as sharding, side chain, plasma, state channels etc.,

are being tried on Ethereum’s L1 network.

2.4 Scalability and Performance

We already know that the current scalability of Ethereum is limited to

almost 12 TPS.

2.5 Development