The first smart contract blockchain, Ethereum, was monolithic by design, meaning it manages its own execution, settlement, consensus, and data availability. Over the years, new decentralized applications developed, leading to increased demand for blockspace. When the demand for blockspace is more than its supply.

The main purpose of halving is to control the supply of Bitcoin and prevent inflation. By halving the mining reward, the amount of new bitcoins entering circulation will decrease, while demand will remain constant or increase.
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