Blockchain technology has been in our lives for quite some time now. Well! It seems to be more than a decade. For all those keeping a close eye on it, it seems to be evolving at breakneck speed. For the unversed, till now, blockchain is a cryptography-based network that allows peer-to-peer transactions. Moreover, you can consider the transactions to be safe, as they are approved or validated over secure nodes. The best part about such transactions is that you do not need an intermediary.
The first cryptocurrency to have entered the blockchain industry was Bitcoin. Today, it is going really strong and seems to be of the highest value. Let us go back to the year 2009 when it all began.
Blockchain Evolution – From 2009 Onward
Satoshi Nakamoto is the person who started Bitcoin in 2009. He devised the basic infrastructure, on which today’s crypto networks and currencies are based. He actually saw underneath the root cause of all kinds of delays in transactions. The intermediary was smartly abolished. If you get to read the whitepapers for Nakamoto’s precious exchange you will learn why non-intermediary-based networks assume so much importance today. When digital exchanges on eCommerce take place, there enters the third-party whose mediation takes time. Thus, leading to delays in the approval of payments. It increases transaction costs and time in the long run.
Thus, in came the timestamp server. It mainly worked in a decentralized manner and distributed the transactions along participating nodes in a network. Thus, came decentralization, which eliminated the need for third parties. Once the technology came into being, Bitcoin also entered the scene as the basic medium of exchange.
Contracts in The Blockchain Network
Today, blockchain technology has come a long way from what it was a decade back. It is more than just immutable, peer-to-peer transactions. Today, you will come across DApps, that are built on such blockchains. The speed and security levels have also increased manifold. You can attribute this development to smart contracts. After the Bitcoin blockchain came into being, many others followed suit. The second-most popular blockchain is Ethereum today. Many industry experts are hailing it as the future of blockchain.
There are several reasons why Ethereum is all set to overtake Bitcoin in popularity and utility. It is more than just a decentralized network for transactions. It focuses more on the applications and smart contracts. Moreover, Ethereum brings with itself more power with the introduction of peer-to-peer payment systems, NFT marketplaces, digital games, and lending and borrowing platforms. So, if you are wondering what smart contracts are or how they work, read on.
Smart contracts are written agreements between two transacting parties. However, it is very much unlike the written agreement, which requires notarization and a lawyer. This digital agreement is governed by a set of rules that no one can alter. The evolution of the blockchain from the Bitcoin to the Ethereum and more is occurring quite fast. Now, we are in the third generation of blockchain technology, where scalability and interoperability are the buzzwords in blockchain evolution.
The latest consensus to have entered the scene is Proof-of-stake. It mainly adds another way to validate transactions. The technology asks users to lock-in their tokens and become a validator. Validators perform the task of validating the transactions, before adding them to the immutable ledger. It is a better technology than mining, which underscores on the scalability aspect. The latest in blockchain technology has an answer to cross-platform blockchain exchanges. This has led to an increase in financial freedom for the users.
Today, blockchains have come a long way and look all set to conquer every industry. Blockchain evolution is more than just a buzzword, in the true sense.