We’re still in the early stages of Blockchain and there’s still a long way to go, but Blockchain 3.0 is the most discussed topic around the web when it comes to blockchain. It’s important that we understand a brief history of blockchain before we dive into what Blockchain 3.0 is.
Starting with the basics
Blockchain 1.0 was Bitcoin and the simple alt-coins like Bitcoin itself, Ethereum, and Litecoin. This was before the whole crypto and ICO hypes.
This went on from 2009 until roughly 2013ish.
Moving forward past 2013, we enter a new era in the blockchain space. This was coined Blockchain 2.0.
Blockchain 2.0 was the extension of blockchain 1.0 moving into privacy tokens, smart contracts and the emergence of non-native asset blockchain tokens and capabilities.
This is where we started to see coins such as Monero and more come into play.
Blockchain 2.0 was also when the rise of dApps came into play.
Dapps like Cryptokitties was not possible with a blockchain 1.0. Blockchain 2.0 offered different capabilities that opened new markets and changed the landscape significantly.
With Blockchain 2.0, companies were able to launch ICOs to raise money for their token, which led us to the crypto hype.
At the time of this article (2018), we’re entering the era of Blockchain 3.0
How does Blockchain 3.0 differ from 2.0?
Blockchain 3.0 does not just offer better capabilities. They also a lot more opportunities for upcoming blockchain companies. The easiest way to explain Blockchain 3.0 is by starting off with a few examples.
- Layer 2 services – These are companies that allow instant, cheap, and automated payments. Think about lightning labs and Ripple. These companies are trying to offer an opportunity for banks to accept and process payments in an instant.
- M2M blockchain applications – These are blockchain solutions geared towards IoT related products like home device automation.
The introduction of DAG
One of the things that make a company Blockchain 3.0 worthy is the concept of Directed Acyclic Graph (DAG).
From a technical point of view, DAG is a directed graph data structure. Just like smart contracts and Bitcoin transactions, the sequence can only go in one direction and one of its main uses is data compression and processing, built for scalability.
With DAG, applications are processed on the same block. Since its linked storage structure only allows for one chain on the network, all transactions occur at around the same time.
This allows for quicker processing.
It’s okay if you don’t fully understand the concept of DAG now. It’s just a technical concept of revolution for Blockchain 3.0
Examples of companies implementing DAG
Blockchain 3.0 companies like IoT Chain (ITC), IOTA, and Byteball are some of the main emerging players to employ a DAG system in which transactions can be confirmed almost instantaneously.
Just to give some quick facts and comparisons, IoT Chain (ITC) uses DAG and can handle more than 10,000 transactions per second. IOTA is able to handle between 500 to 800. To put that into context, VISA can manage 1,700 transactions per second, while Bitcoin can only handle around seven.
Right now, it’s a rat race to see which companies can complete more transactions in the shortest amount of time.
One of the downsides of DAG might be the fact that it is more prone to being hacked, but this should be changed in the near future.
Blockchain 3.0 examples
Prehaps one of the most popular example of a company using Blockchain 3.0 is Cardano.
Cardano is a completely unique blockchain startup which right from its inception took a different route in manifesting from the rest of the industry.
Cardano is said to be the peer-reviewed blockchain that was built from the bottom up with unique features that will in one fell swoop obliterate the current problems that plague the industry.
Cardano is a highly scalable blockchain that seeks to bring exception interoperability, security, and affordability to the industry the like of which has never been seen before.
What Cardano also brings that is new is its self-governing structure and the fact that unlike most other outfits, it has a constant revenue stream which will be used in hiring the most brilliant minds to keep the platform up to date and in-tune with rising challenges.
Another one on the list is ICON. ICON is a pretty popular coin in Asia, especially in South Korea.
ICON is looking to connect the world through their technology to put together the largest decentralized network in the whole world.
The ICON network makes it possible to form connective bridges among other blockchains such as that of Ethereum, NEO and Bitcoin alike which could be something really promising if the team is able to deliver their promise and vision.
Next example would be Wanchain, which is quite unique in the Blockchain 3.0 space.
One of the most commonly discussed problem with Blockchain 3.0 is the scalability issue. Wanchain is hoping to be a gamechanger by solving that problem by giving companies the ability to process thousands of transactions almost instantly.
What Wanchain does is offering a solution via Smart Contract capabilities across unique blockchains, opening them up for mass adoption by businesses.
ArcBlock is another one on the Blockchain 3.0 list. This company focuses on bridging the gap between different blockchains by developing an open chain access layer that enables them to span across multiple blockchains. This will enable blockchain developers to develop and deploy decentralized applications across blockchain at a rapid speed.
The ArcBlock has a strong team and looks to expand into the next Blockchain 4.0
Other companies that people would consider to be Blockchain 3.0 would be EOS, Zilliqia, and so forth.
Blockchain 3.0 is just the beginning. Again, we’re still in the early stages of Blockchain development. At the end of the day, you can think of Blockchain 3.0 as Web 3.0. When Web 3.0 first came out, most people were still unfamiliar with how the internet worked. Nowadays, we see everyone online using their mobile phone and laptops. Our society adapted to the web. Eventually, this should happen with Blockchain as well.
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