Understanding scaling challenges in Ethereum

Since the creation of Bitcoin, blockchain has enjoyed huge success well beyond transferring money and the maintenance of a distributed ledger. Ethereum was invented to address some of the fundamental computing limitations in Bitcoin with the introduction of smart contracts, which unlock infinite potential in blockchain technology and make broad applications of blockchain technology possible. Originally envisioned as the computer of the world, Ethereum has quickly found itself becoming the decentralized infrastructure powering a decentralized virtual economy and the Metaverse, the digital parallel to the real world which we have been used to for the last hundreds of years.

As of July 2022, less than 10 years after its conception and about 7 years after the mainnet launch, Ethereum had become the most vibrant blockchain ecosystem. According to https://messari.io/asset/ethereum/metrics/all, Ethereum now hosts about three thousand DApps and...