Blockchain is a technological marvel that has the potential to change almost every industry around the globe. As the name goes, blockchain is a technology that enables digital information recording in the form of blocks that are chained together with a cryptographic code so it is impossible to tamper with the information.
The many advantages of blockchain have prompted all major industries to make its use. Experts believe that what we have seen of blockchain until now is just the tip of the iceberg. This ingenious invention is all set to revolutionize the world by enabling the true, peer-to-peer exchange of value. Blockchain is poised to put an end to the digital era dominated by centralized, powerful forces.
Three waves of blockchain evolution
Since its invention, blockchain has kept evolving. Here are the three waves of blockchain’s evolution:
The idea of this advanced technology came from Stuart Haber and W. Scott Stornetta who wanted to design a data system that would be impossible to tamper with. The first version of this data system was conceptualized in practice by Satoshi Nakamoto, the inventor of Bitcoin, in 2008. At the time, the goal of blockchain was to improve digital trust by eliminating core control.
The contracts wave
The second wave of blockchain started with the launch of the first second-generation cryptocurrency i.e. Ethereum. Unlike its predecessor Bitcoin, Ethereum was more than just a digital coin that facilitated cryptocurrency trading. It added on-chain smart contracts functionality which led to the development of new decentralized applications and marked a turning point in the history of blockchain.
In 2017, a blockchain-based, decentralized digital infrastructure called EOS was created for deploying decentralized applications.
The applications wave
The principles of blockchain were re-engineered to provide higher scalability over distributed ledgers. During this wave, blockchain technology was optimized for the Internet of Things. Platforms like NEO and IOTA were designed to address the deficiencies of earlier versions of blockchain, such as transaction fees.
In 2019, blockchain’s application expanded to supply chains, crypto assets, cloud computing vertical, and central bank money. More and more companies started investing in blockchain to carry out operations securely, accurately, and efficiently.
Future of blockchain
Predictions about blockchain’s role in the future are mixed. Experts believe that the technology will enable the modern industrial revolution by providing a high degree of privacy and security insurance. It has proved to be valuable in a wide range of areas including banking and finance, business, healthcare, media, real estate, energy, and government.
Some of the most promising areas of projected growth for blockchain include cybersecurity, identity management, and regulatory compliance and audit. Data tampering is one of the biggest challenges faced by the business community. By removing the risk of a single point of failure, blockchain technology prevents tampering and keeps the data secure.
The technology will also be transformative for government functions, such as record management, identity management, taxes, voting, and compliance/regulatory oversight. Blockchain will also power the metaverse, a hypothetical iteration of the internet that will function like the real world. Metaverse has the potential to create another world that will be just as important as the physical world we live in today and it cannot scale without blockchain.