Blockchain is bringing a radical change in the business world with its characteristics of decentralization, immutability, transparency, and distributed ledger.
History of Blockchain: A Brief Overview of Three Generations
1. Blockchain 1.0
The first generation of Blockchain was meant to improve the traditional monetary system. Bitcoin and other cryptocurrencies were introduced in this phase, which were mostly written in C++ and used to employ PoW (Proof-of-Work) consensus model.
Though the Blockchain-based cryptocurrencies enhanced transactional experience, developers realized that the technology holds immense potential beyond cryptocurrencies. This is what became the reason for the second generation inception.
2. Blockchain 2.0
While Bitcoins remained a hype in the market, Ethereum and Smart Contracts came into the limelight in the second Blockchain generation. The developers started treating Ethereum not merely as a cryptocurrency, but also a platform to deliver a scalable experience and build Dapps.
They also started considering the concept of Smart Contracts to make agreements more automated, secure, and effective – a detailed knowledge of which can be taken from our Smart Contracts guide.
3. Blockchain 3.0
The next generation of Blockchain 3.0, is supposed to be the generation showcasing the most efficient Blockchain-based solutions. In this generation, where the impact of blockchain on the economy and market was on the forefront, various challenges associated with blockchain solutions development like the inability to process cross-chain transactions have been resolved. The team of expert blockchain app developers have gained the advantage of going with different consensus mechanisms besides PoW for their projects.
Besides, concepts like DLT (Decentralized Ledger Technology), IOTA and COTI also have been introduced in this generation and become the answer to how blockchain will change the world.
4. Blockchain 4.0
With businesses lining up to adopt blockchain and making it the center element of their tech solutions, presently Blockchain 4.0 brings approaches and solutions for industries that makes it functional for business demands.
Industry 4.0 focuses on automation, integration of execution frameworks, and enterprise resource planning. Blockchain helps this modern industrial revolution by providing an increasing degree of privacy and security insurance.
Some of the areas where blockchain has proved to be valuable are data collection, asset management, supply chain management, healthcare, and financial transactions among others. This implies that Blockchain 4.0 is making Blockchain 3.0 fit in real life business scenarios.
While evolving from 1.0 to 4.0, Blockchain gained a huge momentum in the market – in one or the other form.
The technology continued to enjoy wider adoption across the globe – though not uniformly in all countries – a hint of which can be taken from the graph shared below looking into the blockchain impact on the global economy.
Learn more about how blockchain application development is done and get a better understanding of the concept.
