All remarkable inventions that altered the life of human civilization, like electricity, computers, the internet, etc, divided the generations of its adoptions into distinct landmarks of growing trends and influences. When we look back at the popular rise of blockchain technology, there are several landmarks that markedly separate its growth into 4 stages:
Era 1: Bitcoin and altcoins become publicly available
Blockchain technology was not originally developed for digital currencies; computer science communities were experimenting with the technology for safe data transfers. It was Satoshi Nakamoto who refined the framework to use blockchain technology for decentralized currency transfer. Bitcoin was the first ever currency to be successfully used as a digital commodity.
Blockchain technology consists of a set of blocks linked together using a complicated cryptographic validation process, providing an immutable network. Some of the earliest codes forming the central features of the distributed system were so advanced that they are still used today. Bitcoin’s blockchain network is largely unaltered to this day.
Ere 2: Smart contract utilities are discovered
As the merits of digital currencies and its underlying technology became publicly acclaimed, developers began experimenting with the technology in assets and trust agreements. Ethereum marked the beginning of this application.
Smart contracts built into blocks of a blockchain became mainstream business. Smart contracts are self-governing contracts secured on blockchain technology. Terms and conditions of a formal or informal contract are encoded into the smart contracts and fulfillment of the same trigger the release of funds. The smart contracts can manage themselves, make adjustments and do not need input from outside parties.
Era 3: Swift penetration into sectors
As time went on, it became apparent that blockchain technology can be used to store and transact anything of value, not just funds and smart contracts. The technology is now being used in supply chain management, legal documentation, education, creating digital IDs, etc.
In supply chains, blockchain technology can be used to monitor every stage of the process, from manufacture to the store-front. Digital IDs created with blockchain technology are entirely secure and will not be at risk of cyber-attacks. The security and speed of transaction offered by the technology is attractive to all sectors.
Era 4: Impending future developments
Blockchain technology has faced issues with scalability which is slowly fading away. The technology is being revised to accommodate the issues. In the future, the drawback will be completely eliminated. New applications of the technology are being implemented all the time and there is no way to say where the technology will take us. Artificial intelligence and autonomous projects are also being integrated with existing technology platforms.
Panaesha Capital is a financial technology company with strong involvement in blockchain technology. The company offers products and services centered around the technology, believing that decentralization provides ultimate transparency in customer-services. Explore the company website www.panaeshacapital.com