The silent trend for blockchain quietly gains momentum. This relatively young technology has already transformed the way data is stored and accessed, and although previously it was inseparably linked to cryptocurrencies, today it impacts every single industry.
So how could it happen for just a decade? What shifts to expect from the blockchain? This blog-post aims at answering these questions, overviewing how blockchain changed since its inception, pointing out the main benefits it is ready to offer today, and showing how different industries can take advantage of this technology.
Stages of The Blockchain Evolution
Knowing about the evolution stages blockchain has come through is initial for the understanding of its current trendy nature, as well as predicting ways it can further evolve. So to start with, let’s have a look at the process of blockchain versioning from 1.0 to 4.0.
Blockchain 1.0: Cryptocurrency
The history of blockchain has started in 2008 when the technology was conceptualized by Satoshi Nakamoto and then used as a core component of the cryptocurrency Bitcoin. A public ledger — a record-keeping system that maintains participants’ identities in a secure and anonymous format, has attracted a lot of attention from bankers, lawyers, accountants, and governments because of its potential to change both economic and operational models.
Blockchain 2.0: Smart Contracts
With the introduction of Ethereum, blockchain technology was complemented with smart contracts — autonomous computer programs that execute automatically in the blockchain. Defining and automatically enforcing obligations related to the agreement between different parties, smart contracts have become a perfect solution for simplifying and automating routine and repetitive processes, alongside ensuring their security and objectiveness.
Blockchain 3.0: DApps
The concept of DApps (decentralized applications) was also originally linked to the Ethereum platform, and already mentioned smart contracts in particular. In short, the formula for DApp is the following: frontend + smart contracts.
DApps are blockchain-based user-facing interfaces that connect end-users with the technology with the help of smart contracts. Such a new generation of apps opened up space for wider blockchain usage, offering efficiency, flexibility, and security — all in a user-friendly environment.
Blockchain 4.0: Industrial Applications
The 4.0 version is what happens right now, with more and more businesses adopting blockchain and making it the core element of their technological solutions. In other words, the current shift is for making blockchain fit real-life business scenarios. Does it work? Let’s see in some examples.