There have been so many vigorous discussions about how blockchain came into existence and whether it is realistically applicable or not. Although, one needs to understand how blockchain evolved from an anonymous Whitepaper creation to the refined solid product that it is today. And that is why, we’ll be talking about Blockchain Revolution today.
Blockchain 1.0: Currencies.
Blockchain came into existence because of the invention of the world’s first successful decentralized cryptocurrency, Bitcoin. The cryptocurrencies before Bitcoin suffered from a huge problem with all digital currencies of that time, that is, Double Spending. As Bitcoin’s financial value rose within the blink of an eye, there was a need to store the transactions taking place every minute all over the world. Blockchain’s applicability made a statement by making Data Storing in multiple places that is a Distributed Ledger. This is how blockchain came into the public eye. (Blockchain came into public eye due to its sudden rise in price) Blockchain revolutionized the methods and mediums of storing, recording and analyzing data. For Bitcoin, Blockchain uses a hashing software called SHA-256 to encrypt and store the transactional data and helps ensure maximum security of the investors and miners. By using a hashing algorithm, Blockchain made all the data secure and immutable effortlessly and also saved tons of space as the hash output was only of 256 bits. This proved that all the transactional data is completely secure and immutable.
Blockchain 2.0: Smart Contracts.
After currencies, a new prominent concept called Smart Contracts came into existence. Smart Contracts are nothing but virtual contracts that are made and embedded into Blockchain Platform(s). Smart contracts are The thing of the future. They offer the same features as a physical contract does, but Smart Contracts are way more secure, are created faster, are applicable and are tamper proof. The need of an arbitrator isn’t at all necessary anymore because smart contracts are self-executing contracts. The conditions are fed into the contracts at the time of drawing up the contract. If the conditions aren’t met then the contract won’t execute in the first place. Also, if the contract is made public, then the millions of nodes will be able to view and verify the conditions of the contracts. Smart Contracts not only save time, but also reduce the cost of verification, execution and make Arbitrators obsolete. Along with the use of Blockchain, the smart contracts are already tamper proof and it makes them impossible to hack. The Immutability feature of Blockchain also comes into picture while drawing up a smart contract. All the clauses and conditions, or data in general that goes into the contract at the time of making it up, is totally immutable hence it makes it impossible for anyone to alter or falsify data.
Blockchain 3.0: DApps.
DApps is an abbreviation for Decentralized Apps. The working of a centralized is simple, they have backend codes running on centralized servers. Therefore, if a server is shut down intentionally or unintentionally then all the users will not be able to carry out any activity on their Mobile Phones, Laptops or Computers. This is generally called as a Single Point Failure. As opposed to a centralized client-server relationship, Blockchain uses a decentralized Peer-to-Peer Network System. All the nodes present on a network are Clients as well as Servers themselves. The storage and communication of a DApp is on a decentralized network. The frontend codes of a Decentralized App and user interface can be in any language and are held on a centralized network, as long as it is able to make calls to it backend codes which are on a decentralized network. So even in a decentralized app, it is centralized to some extent but it is linked to a decentralized network. Decentralized Apps have backend codes running on a decentralized network and hence it avoids Single Point of Failure.
Blockchain 4.0: Blockchain, AI and Industry.
With the exponential growth and expansions of businesses and organizations, for blockchain as a technology to be able to sustain itself, it needs to adapt and cater to the industry needs of the 21st Century, keeping in mind the complexities and sizes of businesses these days. Blockchain 4.0 is all about How Blockchain can help industries via heavy use of Artificial Intelligence i.e. AI. Industry needs in today’s time are Automation, Resource Planning, Inventory Planning, Supply-Chain Logistics and Integration of Multiple Systems into One. Along with these aspects, there is also a rising demand for storing secured data and information. As everything is digital nowadays, everything can be hacked into pretty easily, be it databases, client information or classified information about the products of the business. This is where Blockchain comes into picture. As we already know blockchain’s features are security and immutability. With the integration of blockchain into business, organizations can secure their confidential data via hashing. No one will be able to hack into the server as there is no centralized server to hack into and it is virtually impossible to hack the consequent servers one by one. With applying blockchain to IT Sector, business integration and automation is highly achievable, allowing Cross-System/Cross-Blockchain business processes. For example- machines can safely and autonomously place orders for their own replacement parts! And yes, this might just be converted into a real-life scenario within the foreseeable future. Database Management, Asset management, Supply-Chain Management, Health management, Approval workflows and IOT etc. are some sectors that can easily start to integrate blockchain into their businesses effortlessly. Blockchain 4.0 is nothing but Blockchain 3.0 brought into realistic existence. It can largely satisfy the industry needs and make the world A Secure place!