Blockchain 3.0: the next generation of blockchain technology
The first form of blockchain technology, now referred to as Blockchain 1.0, was developed by Satoshi Nakamoto. Blockchain 1.0 is a core component of Bitcoin and serves as a data store, i.e. public ledger. The most notable success for Blockchain 1.0 was solving the “double spending” flaw. The flaw which caused previous digital currencies to fail. The cryptographic proof-of-work (PoW) protocol was the solution. It eliminated the need for a third party to validate transactions.
Blockchain 2.0 was born when developers realised the technology had applications beyond currency. The development of the Ethereum platform allowed for the deployment of decentralised applications by combining data storage and smart contract execution. These ranged from social media networks to financial applications. The most significant constraint blockchain 2.0 faces is scalability. For example, the high energy consumption required to support the current Bitcoin network costs over USD$1.5 billion a year making it unfeasible for mass adoption. With Ethereum, every node on the blockchain must calculate the smart contracts in real-time, which results in low transaction speeds (~15tx/sec).
The current technology cannot process the volume of micro-transactions necessary for worldwide mass adoption. To address this, Blockchain 3.0 is under development. There are several different approaches to overcome scalability constraints. Examples include the Lightning Network, mesh networks, and block lattice structures. The future of blockchain is a decentralised internet combining data storage, smart contracts, cloud nodes, and open chain networks. This article aims to introduce some projects developing Blockchain 3.0.
Building the new internet
Developed a mesh-network called “Tangle“, based on a Directed Acyclic Graph (DAG). The Tangle protocol uses parallel validation: a new transaction must be validated by two previous ones first. Every node making transactions will participate in the mining needed for consensus. The more people using IOTA, the faster the network becomes. IOTA offers infinite scalability, micro-transactions, and Quantum resistance.
EOS provide an open source software which enables vertical and horizontal scaling of DApps. The blockchain architecture used enhances scalability, eliminates user fees, and allows for easy deployment of DApps. EOS provides for inter-blockchain communication. Developers can access server hosting, download bandwidth, and cloud storage.
Previously called Raiblocks. Nano uses a block-lattice structure. Each user account has a blockchain recording balances, which is updated asynchronously to all blockchains in the network using a DAG. The platform provides fast transactions and infinite scalability. Uses minimal resources to run the platform. Nano has a fee-less transaction structure when purchasing with the coin.
The Open Internet Socialisation Project’s goal is to replace Internet Service Providers (ISPs) via members providing internet access to each other. Think of it as a sharing economy, e.g. Uber, Airbnb. Users own the required hardware necessary to form a network. Ecosystem management occurs on a public blockchain. P2P transactions mean the network can function without the founding company. Profits from the sale of internet access get divided between contributing users.
ArcBlock aims to remove the barriers slowing mass blockchain adoption by building a scalable platform for Dapps. ArcBlock’s platform follows a “top-down” strategy focussing on user experience. ArcBlock combines blockchain technology with Cloud Computing. They use an Open Chain Access Protocol to enable interconnectivity between different blockchains. ArcBlock uses Blocklet for its serverless computing and microservice architecture.
A decentralised second layer payment protocol, operating on top of a blockchain. It uses smart contracts to enable secure, high volume, high-speed micro-transactions. Allows for instant payments, scalability, low costs, and cross-chain atomic swaps. This swap is where two blockchains supporting the same cryptographic hash function make transactions without 3rd parties. Uses SegWit to protect against transaction malleability.
Wanchain is a universal cross-chain protocol that records both cross-chain and intra-chain transactions. They aim to rebuild financial infrastructure by allowing isolated banking service networks to connect to each other. Ring signatures provide anonymity for the sender of transactions. One-Time Addresses offer anonymity for receivers of transactions. Any Ethereum DApp will run on Wanchain’s platform with enhanced privacy and cross-chain capabilities.
Neblio is building a business blockchain developer network to offer easy to use APIs and tools for non-techie users. A decentralised P2P mesh network of nodes facilitating information exchange via proprietary transaction modules. Relaying blocks mesh nodes together. Each node contains a copy of the entire blockchain increasing performance of DApps. The scalable framework processes transactions fast.
Last updated: 27/03/2018