Blockchain is said to be a new technology that people are still struggling to find applications for. How did people talk about Blockchain 3.0?
Well, that’s because the standard for Blockchain 2.0 has been established by the Ethereum platform with applications and smart contracts. And even as Ethereum expands the potential scope for decentralized ledger technologies, people still feel there is room for further improvement.
What is Blockchain 3.0?
Blockchain 3.0 is the third stage of development for blockchain. When the first phase of Blockchain was founded by Bitcoin, the idea of a technology supporting a new financial system developed even further.
Bitcoin is not a magic internet currency but a digital asset that cannot be controlled by governments and banks. The transaction infrastructure has been maintained ever since by a network of miners that agree on a common blockchain through a proof of work mechanism.
Although Bitcoin is the most pervasive and has the highest price in the market, it is still really slow and difficult to use. As a result, developers started to come up with better alternatives.
The conflict over a better cryptocurrency than Bitcoin has brought new ideas to life on the Ethereum platform.
The Ethereum crowdsale took place in 2014 and marked a major milestone for Blockchain 2.0. Vitalik Buterin’s Ethereum Platform [đã ra mắt vào ngày 30 tháng 7 năm 2015], with 72 million coins minted, bringing smart contracts and decentralized applications to market.
This demonstrates and expands the many possibilities blockchain can potentially bring to the world of business, except for cryptocurrencies.
Besides the financial aspects, the community started to look at blockchain 2.0 issues that were kept from the first generation and new problems emerged.
So, Blockchain 3.0 comes about as an amalgamation of efforts to overcome current problems in the industry related to privacy, scalability, and interoperability.
What is expected?
Since most blockchains are public, anyone can see and check what goes on in terms of transactions and addresses. Therefore, chain analysis and dusting attacks are the risks that people have been taking when using cryptocurrencies.
Projects like Monero, Verge, and Zcash have attempted to solve these problems by implementing a combination of stealth addresses, ring signatures, and transaction data mixing. However, they are not considered part of Blockchain 3.0.
But the third generation of blockchain will have to come up with a viable innovative security solution.
One of them is MimbleWimble. This appears to be a leading blockchain 3.0 security protocol that replaces addresses and contains a scripting language with blocks populated only with inputs, outputs, and signature data. .
Ability of extension
It’s not uncommon to assume that Bitcoin is slow and reaches as fast as 10 transactions per second. And mining its PoW consensus mechanism requires the network to use enormous resources.
Therefore, solutions like Layer Two, Proof-of-Stake, Directed Acyclic Graphs (DAGs) are intended to facilitate the performance of the blockchain.
Blockchain and cryptocurrency are lacking an interoperability protocol. And currently, the only way to move from one blockchain to another is to take your cryptocurrency and exchange it for another in a third-party exchange.
But for blockchains that will be used for purposes other than cryptocurrency, this situation will be very inconvenient.
Therefore, Blockchain 3.0 needs to come with a mechanism to transfer data and assets between blockchains without the need for a centralized third party.
Blockchain 3.0 project makes a breakthrough effort
AION is the private cryptocurrency of the Open Application Network public infrastructure. It is based on a multi-tier blockchain system designed to address privacy, transparency, and scalability. Its main focus is on Blockchain interoperability.
The platform hosts and connects other blockchains in a similar way to how the internet connects websites. Its ecosystem is formed from 3 main components:
-Token bridge: to trade tokens
-AION Virtual Machine (AVM): is a modified version of the Ethereum virtual machine that supports applications written in solidity and java.
-AION API: is a developer interface for building dapps
Zilliqa is a cryptocurrency project that aims to make blockchain more efficient, scalable and faster using a hybrid proof-of-work consensus protocol that uses sharding on its mainnet.
Blockchain bloat is a problem facing many blockchains including Bitcoin and Ethereum. The bloat slows down the network and increases transaction fees. From Zilliqa’s point of view, there can’t be a limit of transactions per second.
The model they use is by dividing the work done on the network with increased throughput for every 600 new nodes. Therefore, the network scales the same as it grows in size.
EOS is the cryptocurrency of EOS.IO.
EOS.IO is a decentralized platform that provides fast and free transaction processing, supports smart contracts and dapps, it is geared towards developing a platform that acts as an operating system.
The goal of the platform is to provide an environment that is easy to develop applications and can support millions of transactions per second.
Solve the current problem
In terms of scalability and privacy, Blockchain 3.0 is sure to take the industry to a whole new level.
Since most blockchains can handle tens or hundreds of transactions (and in some cases thousands), a spike to millions of tps could put blockchain-based payment systems ahead of processors. traditional payment processors such as Visa or Mastercard.
By achieving such performance, blockchain payment systems may have a chance to truly support a universal, widely adopted financial system.
In addition, by improving the level of privacy on the network, chain analyzes and Dusting attacks are less likely to occur.
And consensus systems, beyond Proof of Work – like Proof of Stake or Directed Acyclic Graph – will create a blockchain without mining, thus reducing energy consumption.
Blockchain 3.0 is the third stage of blockchain development. It represents an attempt to overcome current problems in the industry.
The third generation of blockchain is expected to come with outstanding interoperability, scalability, and privacy.
Some of the most prominent crypto projects such as Blockchain 3.0 are Aion, Zilliqa, and EOS.
Dislaimer: This information is provided as a personal blog, not general information or investment advice. We are not responsible for your investment decisions.
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