Evolution of Blockchain technology
Bitcoin is the most famous implementation of the Blockchain(BC) technology. It has shown the world that there is a new reliable technology that can securely handle financial transactions. Although Bitcoin makes headlines mainly by the speculation-driven price explosion today, the technology behind it will shape our future.
The second generation are Blockchains like Ethereum, these provide much greater support for Smartcontracts.
The third generation seems to be the DAGs (Directed Acyclic Graph) like IOTA. Instead of writing one Data block after the next, DAGs allow to write multiple Data blocks at once. This leads to a considerable increase in transaction per second.
The next main difference to the classical blockchain is the implementation of security. Instead of miners every participant confirms two previous transactions before he writes his own transaction. This results in two additional benefits. On the one hand, the transaction fees are eliminated and, on the other hand, as the number of participants increases, so does the number of transactions per second that become confirmed.
Because they allow royalty-free transactions, DAGs such as IOTA are suitable for micro-payments. Since the transaction processing time adapts to the needs, DAGs can also cope with the countless devices and sensors of the Internet of Things.
The development of blockchain-based technologies has just began and will bring forth many innovations.
Companies are therefore facing the challenge of quickly exploiting the potential of these technologies in order not to be left behind in the competition.
On the other hand, it needs a well-considered strategy to find the right answers to the pending questions.
- Which business processes can be operated more efficiently with BC / DAG?
- Which new business areas can be opened by means of BC / DAG?
- Which technology/technology mix is right for the company?
- When is a public or a closed BC / DAG implementation the better choice?
- How to identify the right partners for cooperation?
- ….
