The Three Generations Of Blockchain Technology
Where is the blockchain technology headed? Read more about the generations of technology. It is an insightful write-up.
The Independent Generations Of The Blockchain Technology
It is possible to point to landmark events that can be used to divide the process into stages in the development of the internet. Hereby these important landmarks come as the creation of the first wide areas computer networks in the 1960s with the development of an electronic mail system in the 1970s as the creation of Ethernet later in that decade and the launching of the World Wide Web in the 1990s as well as the creation of the first browsers and search engines later in that decade among others. Hence following each of these hallmark developments, the internet has changed dramatically with each step pivotal in creating the internet that we know and rely on today.
It was therefore in a similar way that being possible to look back on the development of blockchain and also dividing it into stages that are marked off by important developments and inventions. Thereby blockchain technology has only been in existence for a fraction of the time that the internet has as it’s likely that there are still important developments to come. Therefore experts have begun to divide the history of blockchain into at least three important stages.
Stage 1: The Essential Bitcoin And Digital Currencies
In this stage, while the ideas that would go into the blockchain were swirling around in computer science communities and it was the pseudonymous developer of Bitcoin, Satoshi Nakamoto outlining the blockchain in the way we know it explaining in that white paper written for BTC. It is thereby in this way the blockchain technology began with the Bitcoin network. Thereby the blockchain has since gone on to see use in a huge variety of other areas, in some sense designed especially for this digital currency and for advancing the goals of digital currencies more broadly.
Whereas in the earliest stages, blockchain set up the basic premise of a shared public ledger supporting a cryptocurrency network. Thereby Satoshi’s idea of blockchain makes use of 1megabyte blocks of information on Bitcoin transactions. These blocks are then linked together through a complex cryptographic verification process forming an immutable chain. It is then in its earliest guises that the blockchain technology set up many of the central features of these systems that remain today. It is indeed bitcoin’s blockchain that remains largely unchanged from these earliest efforts.
Stage 2: What Is The Need For Smart Contracts
Time goes on and developers begin to believe that a blockchain could do more than simply document transactions as the founders of Ethereum for instance had the idea that assets and trust agreements could also benefit from blockchain management, whereas in this way Ethereum represents the second generation of the blockchain technology.
Here the major innovation brought about by Ethereum was the advent of smart contracts that are typically contracts in the mainstream business world that are managed between two separate entities, sometimes with other entities assisting in the oversight process. Thereafter smart contracts are those that are self-managing on a blockchain and triggered by an event like the passing of expiration date or the achievement of a particular price goal, as in response the smart contract manages itself making adjustments as needed and without the input of outside entities.
Hereby we may still be in the process of harnessing the untapped potential of smart contracts as to whether we have truly moved on to the subsequent stage of the development of blockchain is debatable.
Stage 3: The Future Of The Technology
It comes thereby as one of the major issues facing blockchain is scaling as Bitcoin remains troubled by transaction processing times and bottlenecks. Hence many new digital currencies have attempted to revise their blockchain to accommodate these issues but with varying degrees of success and in the future, this is one of the most important developments paving the way for blockchain technology going forward will likely have to do with scalability.
Thereby Summing Up The Discussion
It was found that beyond this new application of the blockchain technology is being discovered and implemented all the time and it is difficult to say exactly where these developments will lead the technology and the cryptocurrency industry as a whole. The supporters of blockchain thereby are likely to find those incredibly exciting from their perspective as we are living in a moment with an epochal technology that is continuing to grow and unfold. Thus the technology is set to increasingly influence the applications and enable the developers to surge ahead with innovative ideas.