Evolution of Blockchain
The number of Internet users has grown exponentially over the last few years. The Internet is not only a place for getting information anymore, but it’s also a great platform for business. Online transactions happen every day. The security of these transactions is still a concern. Hackers are everywhere and they hardly miss any chance to steal your financial or other private information.
Blockchain technology is a modern solution for a safe online transaction. It is a decentralized database where information is recorded and managed by different participants. Several transactions are recorded on every block and if a change is made, then the change will be apparent in every block. So, if a hacker changes a block, it will be easily noticeable; unless he makes changes to every block.
The blockchain technology is very popular now; especially the banking industry is investing a lot in it. This technology allows transactions between two people without the need for an intermediary, thus reducing the risk of any fraudulent activity. Here we will know about the evolution of blockchain to get a clear understanding of this new technology.
Blockchain came into the picture about 10 years back. It was created by the same people who invented ‘bitcoin’. Initially, it was considered to be a technology that supported bitcoin. Blockchain ensured that any transaction was impossible to modify without changing each of the blocks. So, blockchain ensured a secure and irreversible platform for a transaction. However, there were limitations in terms of scalability and usability. It also didn’t allow Turing complete smart contracts.
A Russian-Canadian programmer named Vitalik Buterin, came up with the project ‘Ethereum’ in 2014. This technology could match human behavior and Turing complete smart contracts could be programmed as well. Ethereum could perform micropayments as well which looked promising for the retail industry.
Then came the concept of ‘proof of stake’ and according to it the group that has the highest computing power is in charge of decision making. The group is called ‘miner’ and it controls data centers. Blockchain scaling is the latest innovation in this technology which makes the processing of information faster. This is done by calculating how many computers are required for the transaction and then distributing the work so that maximum efficiency can be achieved without compromising security. This scaled blockchain will be able to power the Internet of Things (IoT).
It will be possible to lower the transaction cost and make international transactions faster with blockchain technology. The world is now bracing for self-driving cars; blockchain can be used to make payments for the charging station of the cars, for example. The cryptographers, mathematicians, and computer scientists are continuing their blockchain research to make it more sophisticated. In the future, blockchain will be adopted by mass companies and it will become the norm of the online transaction.