We all know that blockchain technology is a game-changer. It became popular because of its security and efficiency. People have become crazy about this robust technology. It has many advantages, such as immutability, decentralization, security, and many more.
In simple words, we say that blockchain is decentralized, distributed ledger technology. It efficiently records transactions and assets in its business network. It has produced many versions in recent years.
It is a digital record of the transaction and stores each transaction in various chains of blocks. We can use this technology in multiple sectors.
We effectively used it in banking, finance, government, healthcare, insurance, retail, and many others.
Blockchain Technology Version
There are four versions, from 1.0 to 4.0. It helps us to know how this technology works. It also helps us to analyze these versions in more detail.
Blockchain 1.0: Cryptocurrency
Cryptocurrencies are the newest and most visible use of Distributed Ledger Technology (DLT). Hall Finley presented it in 2005, which contains DLT. It is the first application based on the cryptocurrency Bitcoin. Many other cryptos are being introduced into the market. These currencies enable financial transactions on the blockchain.
A person or a group of people who went by the pseudonym Satoshi Nakamoto created it. They want to create a “trustless” cash system and remove third-party mediators.
We also know blockchain as “Internet cash.” It is a digital payment system. There is a possibility of it becoming the “Internet of Money,” such as the Internet of Things (IoT). Bitcoin and its predecessors have the possibility of revolutionizing currency, trade, and business.
Blockchain 2.0: Smart Contracts
Nick Szabo forged the phrase “Smart Contract” in the 1990s. These contacts are written in code and also designed with instructions. It is necessary to follow these steps. This process is secure, transparent, and accurate.
Bitcoin is profitable, but there are some disadvantages, such as wasteful mining and less scalability. With version 2.0, it solved these problems. It is an autonomous computer program. We perfectly executed it when all the needed conditions were complied with.
We perform these contracts on the blockchain to reduce the chances of error. The primary motive is to cut down on excess transaction costs and time. It is also secure and has fewer chances of fraud.
It effectively maintains transparency in transactions by using cryptographic algorithms. We also used it for trade finance, supply chain management, property ownership, and many more.
Blockchain 3.0: Introduction to DApps
Decentralized apps, or DApps, are collections of smart contracts. It incorporates smart contracts into packages, and users can interact with them. It has a front-end written in any language, such as a traditional app. Its backend code runs on a decentralized peer-to-peer network.
DApps are blockchain-based apps that handle all networks. It runs on decentralized storage and communication, such as Ethereum Swarm. The best examples of these apps are BitMessage, BitTorrent, Tor, Popcorn, ForkDelta, CryptoKitties, Bancor, Ether Shrimp Farm, PoWH 3D, Moon, and many more.
Blockchain 4.0: Industry
We use this version for industries such as finance, supply chain, manufacturing, healthcare, logistics, and many more. This version is available for business requirements.
It became famous for its security. It is becoming safer with new technologies. Blockchain developers are using the latest technology so it becomes secure and affordable.
Blockchain technology is not a new name now. It became popular in a short time. The primary reasons for its popularity are its scalability and adaptability. Its transactions are costly, but with recent technology, they will become safer. People are crazy about blockchain technology.