Ethereum created the world of DeFi.
Executing all of the activity that takes place on the Ethereum blockchain requires a massive, decentralized computer to process transactions and record them on a ledger. This engine is called Ethereum Virtual Machine (EVM). As the network continues to grow, EVM can be scaled and upgraded in several ways to keep up with demand.
Right now, Ethereum uses proof-of-work mining. A move into proof-of-stake is on the roadmap. As it expands PoS, the network will have sharding, more sidechains, and more layer 2 chains built on top of EVM. These will help ease Ethereum’s current “bottle-neck” issue where it has difficulty keeping up with demand and the speed at which transactions should be processed during times of high traffic. This demand that Ethereum is currently experiencing is telling of the future promise of blockchain innovation.