What The Emergence Of Blockchain 5.0 Means For Business Managers And Entrepreneurs
What The Emergence Of Blockchain 5.0 Means For Business Managers And Entrepreneurs
Over the last few years, blockchain technology has progressed and penetrated the arena of technology, evolving at a pace faster than most other parallel domains. While the world is occupied with bigger players like Facebook getting involved in cryptocurrency, companies are making some revolutionary advancements for efficient use cases of the blockchain phenomenon. A lot of advancements are happening under the radar at a very quick pace. In fact, the pace of progress is so fast that within about a decade of the Satoshi white paper coming to light, the world is witnessing the emergence of blockchain 5.0.
So what is the meaning of blockchain 5.0? It’s important that we understand the impact of the progress because I believe there is a strong possibility that blockchain will become the platform for a major industrial upheaval in the next few years. The application of blockchain goes beyond just currency and finance. I have noticed five generations of blockchain that have been marked by serious upgrades in transaction speeds and throughput rate.
The Blockchain Generation Journey So Far
Blockchain generations have progressed with improvements in transaction speed and levels of security. The applications have grown beyond cryptocurrencies to industries including the diamond trade, healthcare and so on. However, more importantly, mainstream acceptance seems to be growing due to the progression of emerging generations of blockchain technology.
Generation One
The journey started with bitcoin (I own some coins) when blockchain technology laid the foundation of decentralized ledgers and a cryptocurrency that gave us a peer-to-peer network for sending and receiving money. Bitcoin utilized the proof of work algorithm. But there were scalability issues.
Generation Two
Then came ethereum, which allowed the creation of secure smart contracts and helped open up the field for decentralized applications. Ethereum unraveled the true potential of blockchain as use cases beyond cryptocurrencies became visible. The transaction speed reportedly went up to 15 transactions per second.
Generation Three
The advent of Cardano and EOS as blockchain platforms marked the third generation of blockchain where the transaction speed claims go over 3,000 transactions per second. The consensus mechanism used for both EOS and Cardano is delegated proof of stake, which reportedly lowers energy costs.
