Phases of Evolution of Blockchain
A Blockchain is a series of blocks that each contain a specific piece of information. Consequently, a Blockchain is a ledger, or file, that continuously expands and permanently records every transaction. Every transaction occurs after the one before it in a secure, sequential, and unchangeable manner during this procedure. A new block is generated each time an information storage block is finished.
What is Blockchain?
A blockchain is a particular sort of distributed ledger technology (DLT) that consists of a growing list of records, known as blocks, that are safely connected to one another using cryptography. Each block also includes transaction data, a timestamp, and a cryptographic hash of the preceding block (generally represented as a Merkle tree, where data nodes are represented by leaves). The timestamp demonstrates that the transaction data was present at block creation. A chain is effectively formed by the blocks since each one links to the blocks before it because each block includes information about the blocks before it (see linked list data structure). Therefore, once a transaction is recorded, it cannot be undone without also undoing all subsequent blocks, making blockchain transactions irreversible.
- The impact that blockchain technology is having on a variety of industries, including banking, healthcare, supply chains, education, and other fields, makes it one of the most innovative technologies of the twenty-first century.
- A number of applications have emerged, all but underscoring the kind of impact that blockchain is likely to have as the race for digital economies fast grows up since it was first launched in the early 1990s, at which point its popularity began to expand.
The initial work on a cryptographically protected blockchain where the time stamp of documents was unaltered was done in the 1990s by S. Haber and W. Scott Stornetta, and that is how the Blockchain came to be.
Evolution of Blockchain Technology
- Bitcoin: The peer-to-peer network used by Bitcoin, the first decentralized cryptocurrency, eliminates the need for middlemen. A person or group of persons going by the moniker Satoshi Nakamoto created the Bitcoin cryptocurrency in 2008. Transactions for Bitcoin are kept on the public ledger known as the blockchain. Right now, there are more than 18. compared to the current ceiling of 21 million Bitcoin tokens in circulation.
- Litecoin: Charlie Lee, a former Google employee, invented Litecoin in 2011. Shorter transaction speeds, cheaper fees, and a concentration of miners were some of the improvements he made to Bitcoin technology.
- Ethereum: Vitalik Buterin introduced Ethereum in July 2015. The second-largest cryptocurrency by market cap right now is Ethereum, behind only Bitcoin. The blockchain platform Ethereum has its own programming language, Solidity, as well as its own digital currency, Ether (ETH).
- Ripple: Like Litecoin or Bitcoin, Ripple is a sort of cryptocurrency that runs on an open-source, peer-to-peer, decentralized platform that enables easy money transfers in any format. A blockchain-based digital payment network and protocol called Ripple has its own money called XRP.
- NEO: NEO, formerly known as Antshares and developed in China, is actively aiming to overtake other key cryptocurrency players on the international stage. It focuses on smart contracts, or digital contracts, which let users draft and carry out contracts without the aid of a middleman.
- IOTA: IOTA, a 2016 invention, is an Internet of Things (IoT) application. By 2020, there would be billions of gadgets online. Smart devices can communicate data and payment information with numerous other devices in transactions carried out throughout the day inside this Internet of Things environment. IOTA wants to replace other methods of performing transactions on smart devices as the norm.
Phases of Evolution of Blockchain
Below is an explanation of the several phases in the evolution of blockchain:
1. Phase 1 (Transactions)
2008-2013: Blockchain 1.0 (Bitcoin Emergence): Blockchain 1.0 is the first blockchain type that supports Digital currency, Distributed Ledger, Merkle tree, Blockchain data, and PoW. This is the first blockchain type to support Bitcoin as a form of currency. Satoshi Nakamoto first presented it in 2008. Version 1.0 is the initial release. Cryptocurrencies or the Internet of Money enable financial transactions over the internet. It uses a 16-bit architecture and is the most basic type.
2. Phase 2 (Contracts)
2013-2015: Blockchain 2.0 (Ethereum Development): Blockchain 2.0 supports Smart contracts, Virtual machines, and Decentralized, Distributed Applications.
- Because Bitcoin has some restrictions, Vitalik Buterin started developing what he thought would be a flexible blockchain that can serve a variety of purposes in addition to acting as a peer-to-peer network.
- A significant turning point in the history of the blockchain came when Ethereum was introduced as a brand-new public blockchain in 2013 with more features than bitcoin.
- By allowing users to record other assets like trademarks and contracts in addition to bitcoin transactions, Vitalik Buterin created Ethereum apart from the Bitcoin Blockchain.
- The most recent addition expanded Ethereum’s capabilities beyond those of a coin to include a platform for creating decentralized apps.
- Given its capacity to support smart contracts used to carry out diverse operations, the Ethereum blockchain has developed to become one of the most popular implementations of blockchain technology in 2015.
- The Ethereum blockchain technology has also been successful in uniting a vibrant developer community, which has enabled it to create a true ecosystem.
- Due to its capacity to handle smart contracts and decentralized apps, Ethereum blockchain innovations have the most daily transactions. In the cryptocurrency industry, its market cap has also significantly increased.
- A blockchain project called Umbrella was made public by the Linux Foundation in 2015.
- They are referred to as Hyperledger, which up until now has served as a joint effort for distributed ledger development.
- Hyperledger aims to encourage cross-industry cooperation for the creation of blockchain technology and distributed ledgers under the direction of Brain Behlendorf.
- Hyperledger is focused on enhancing the performance and dependability of contemporary systems to support cross-border corporate transactions.
3. Phase 3 (Applications)
2016-2018: Blockchain 3.0 (DApps): Blockchain 3.0 supports scalable, good user interface, user experience, and interoperable applications.
- In recent years, a number of projects have emerged that use the possibilities of blockchain technology. In recent years, a number of projects have emerged that use the possibilities of blockchain technology.
- Along with developing new features that make use of blockchain technology, several projects have aspired to overcome some of the shortcomings of Bitcoin and Ethereum.
- Among the latest blockchain applications is NEO, which claims to be the first open-source, decentralized, and blockchain platform to be introduced in China.
- Jack Ma, the CEO of Alibaba, has already endorsed NEO, which is positioning itself as the Chinese Ethereum and aims to rival Baidu’s influence in the nation.
- The cryptocurrency platform was created for the Internet of Things environment because it strives to offer no transaction fees as well as distinctive verification procedures.
- Some developers decided to use blockchain technology to hasten the growth of the Internet of Things, and as a result, IOTA was created.
- Additionally, the Second-Generation Blockchain Platform, IOTA, and NEO are making waves in the market.
- The blockchains for Monero, Zcash, and Dash were created as a way to overcome some of the security and scalability problems related to blockchain applications.
- Describe as privacy The three blockchain platforms, including altcoins, aim to offer very high levels of transaction security and anonymity.
- When it comes to investigating the blockchain applications that are emerging in what is now known as private, hybrid, and federated blockchains, collaborations like Microsoft and Microsoft seem to have some direction.
- A new Blockchain system powered by EOS as the native cryptocurrency went into effect in 2017 thanks to the publication of a white paper by a private business block outlining it.
- The GPU and CPU are just two examples of characteristics that EOS attempts to mimic. The decentralized operating system IO also functions as a platform for smart contracts.
- The primary objective is to encourage the adoption of decentralized applications (dApps) via a self-sufficient decentralized organization.
- The main objective is to promote the implementation of decentralized apps through an independent decentralized business.
- Decentralized peer-to-peer networks are used by DApps (decentralized applications) to run their backend code.
- A dApp can have user interfaces and frontend Blockchain example code written in any language that can call its backend, just like a conventional App.
2020: The Future: Blockchain 4.0 (Industry): Blockchain 4.0 describes solutions and approaches that make blockchain technology usable for business and industry needs.
- Because so many businesses, governments, and other organizations are investing heavily in blockchain technology to encourage new developments and uses, the future of the technology appears promising.
- Both supply management and the cloud computing industry are already making extensive use of the technology.
- Future applications of the technology should include fundamental tools like internet search engines.
- By 2022, at least one blockchain-based company will reportedly be worth more than $10 billion, according to Gartner Trend Insights.
- The research firm predicts that as a result of the blockchain digital transformation, the business value would surpass $3.1 trillion by 2030 and reach over $176 billion by 2025.
Blockchain 3.0 (DApps):
Blockchain 4.0 (Industry):
|Year||Blockchain 1.0||Blockchain 2.0||Blockchain 3.0|
Blockchain Evolution Timeline
|1991-2008||Working on the first blockchain are Stuart Haber and Scott Stornetta.|
|2009||White Paper on Bitcoin is published by Satoshi Nakamoto.|
|2010||10,000BTC is spent on Bitcoin for the first time.|
|2013||The Bitcoin market now exceeds $1 billion.||Ethereum White Paper is Published by Vitalik Buterin.|
|2014||Crowdfunding Provides Support For The Ethereum Blockchain.|
|2014||For the purpose of implementing blockchain technology, Blockchain Technology R3 is established, along with a consortium of more than 40 legacy financial institutions.|
|2014||Erik Zhang and Da Hongfei Introduce the NEO Project as Antshares.|
|2015||Release of Ethereum’s Second Blockchain.|
|2015-2018||Continued Development of Blockchain Technology Increased cryptocurrency use and businesses using technology to improve efficiency serve as indicators of this.|