Crypto Currency Technologies. Blockchain Smart Contract
You must have heard about the dominance of the blockchain technology in the financial sector. The same technology has been practiced in the crypto currencies. The technology is like an umbrella that guards you against anyone else creating a duplicate copy of the Bitcoin or crypto currency that you have purchased.
The blockchain technology is used in several domains
The blockchain technology is considered revolutionary, and there are entrepreneurs and programmers who are planning to include it in several other fields. For instance, monitoring of land ownership, distribution of the medication and so on. The popularity of the Bitcoin and other crypto currencies can be given credit to the block chain technology to a huge extent.
Is ICO the new way of generating money?
ICOs have become the new way to make money. There are companies and business ventures that have been successful in raising $100 million, and even $ 200 million and more via the selling of the tokens. The ICOs or the Initial Coin Offerings represent the new crypto currencies in the world of finance. The ICOs have been able to raise $4 billion money and it is expected to increase even more in the coming future.
The ICOs are basically tokens that were created and sold on the Ethereum blockchain technology. This means that the entire trade has taken place on the Ethereum blockchain and the things were tracked and monitored on the same platform. But things are changing and getting transformed in a very big way possible.
Smart contracts have evolved
The concept of the “smart contracts” have come up, which is believed to be a set of rules and regulation that holds authority and is not possible to alter in the future. It allows a developer or a programmer to write absolutely anything in the form of the smart contract. This gets executed by the network. Let us consider an example to get a better understanding and idea about it.
Suppose X and Y bet about the weather predictions about the next day. It is through the smart contract the bet will be carried out or executed on the grounds of no trust. Both X and Y will submit their bet amounts to the smart contract. At a specific time, the very next day, it is the smart contract that executes an API call to the Weather API and find out whether the weather is sunny or rainy. Based on the weather reports, the total betting amount will be sent automatically to either X or Y, on the grounds of their correct prediction on the weather.
The native programming language-Solidity
The smart contract is basically a software program, that can be operated on anyone’s computer device. It is to be ensured that a programmer or a developer is unable to exploit anyone’s computer or the network as a whole. This is definitely a problem, but Ethereum has been successful with a solution. The solution lies with the Solidity, which is a native programming language.
The native programming language needs deep learning
The native language allows you to write any program in it, but there are still many things to be learnt and understood. The developer or programmer community is still a novice in the domain. This has definitely made Ethereum as a solid platform for ICO. Apart from the Ethereum based cons, there are some other disadvantages as well. They are:
- Low speed
- No native programming language recognition on the blockchain
A lot of research is taking place in the blockchain technology
It is quite exciting to find the ample research work and development taking place in the blockchain arena. From the recent developments, it is quite clear that there are new blockchains that are securing their positions in the industry. It is believed that they will have so much more to offer to the industry. The developers and the programmers will use the new blockchains in order to create their ICOs and decentralized apps.
It is particularly very exciting to find out that the development in the new blockchains will enable the general computations take place in a decentralized way. Furthermore, the newer generation of the blockchains that are creating a place of their own have so much to offer, especially the increased potential to write the smart contracts.
What are the different types of blockchains?
Let us have a look at the different blockchains out there that are available.
· What is Tezos blockchain?
The Tezos blockchain opts for the functional programming language for the smart contracts. The majority of the developers don’t have the knowledge and the understanding of the functional programming. The functional programming language will be more appealing to learn than the Solidity of Ethereum.
NEONEO is another blockchain technology, especially for supporting the programs written in Python and Go. The blockchain also supports the .NET and Java in the initial phase. The NEO blockchain supports four languages, which serves almost the 90% of the developer community.
QtumThis Blockchain gives the developers the allowance to write similar to Ethereum smart contracts, but with the UTXO format of Bitcoin. In Bitcoin, the concept is all about keeping a track of every account’s balance. The transactions that are sent to the wallet and are still not spent are actually tracked down. It is the total of such transactions that actually give the complete balance.
When you compare the Ethereum’s Solidity, Qtum seems to be a better option as it is highly efficient and lightweight in nature, when it is about maintaining the records. Qtum aids in the lightweight smart contracts.
It is really quite interesting to witness the different use of blockchains and how they are adjusting to the varying programming languages. Based on the requirements and demands, some blockchains have been designed to focus on the consumers, while others towards the business ventures.
The concept of native blockchain identity
When you are using the Ethereum based blockchain, you own the private key, but your identity is the public key. When you distribute the smart contract, you will receive your very own public identity. While using the NEO bloackchain, you will receive a native identity, which gives the right to use across the blockchain apps.
Just imagine what if the internet gave you and every other user the opportunity to have a native identity. If this was the scenario, there was absolutely no need to use any separate identity for each and every service that use on the internet.
There are several individuals who consider and even believe that the blockchain in the new internet. There are so many models available where the blockchain technology fits perfectly. Moreover, considering it as the new internet might not be a very bad idea either. When there is a native identity on the blockchain, it will have a native identity that can be operated to get access to everything that is created on the blockchain platform.
Resolving the identity problems
There are several developments in progress in order to resolve the identity issue reported on the blockchains. For example, on the Ethereum platform, it is the Civic that will enable you to record your identity which can be used in the future for other apps as well on the blockchain. The concept of native identity seems to be a good proposition.
The blockchains are criticized because of the unanimity methods
The present generation of the different blockchains that are in operation are criticized quite an often. They are often slammed for the high amount of energy they consume in order to power the network. Moreover, the costs associated are also quite high since the unanimity method that Bitcoin, Ethereum and other blockchains make use of.
The nodes in the network need to be evaluated
In every blockchain platform, the nodes used in the network need to periodically evaluated so that they are up-to-date. You have to understand that the nodes in the network are allotted on the ground of geographical boundaries. Keeping a track of every node in the network is not something that is practiced. This demands for syncing the nodes and thereby agree upon a new network state.
Every node in the network try to have a superior hold
The proof of work is presently the most popular unanimity method. In this method, it is found that each of the nodes tries to proclaim their own updated position of the network via resolving a cryptographic puzzle. The node that solves the problem first, dictates the other network regarding the updated state and accordingly every other node will move ahead in the said direction.
There are no doubt several disadvantages of the method. The two most common cons are:
- An expensive method
- A slow process
There are solutions available to the problems available, but they again have their very own pros and drawbacks. Ethereum is planning to opt for the unanimity to proof of stake method. On the other hand, it is found that Tezos and Qtum blockchains have come up with their own versions of the proof of stake unanimity method from the very beginning.
The consensus protocols by different blockchains
The most interesting aspect about Tezos blockchain is that it has gone a step ahead offering the decentralized method of authority to adjust and adopt ant major upgrades that takes place in the consensus or unanimity protocol. Every major upgrade that takes places are voted upon.
The NEO blockchain makes use of the dBFT or the Delegated Byzantine Fault Tolerance consensus protocol or method. This helps to sync to a network way faster and the best part is that excessive energy doesn’t have to be spent. The protocol supports up to 10,000 transactions every second. When compared, you will find that Ethereum can support only 15 transactions per second.
Are we living in the future that we are expecting?
But are we still living in the future presently? Perhaps the answer is a no. We might be living within the experiments taking place. There is every possibility that everything that we see and feel today all around us today won’t there in the future. Furthermore, what we are thinking about our future might not have been discovered or invented yet.
There are very high hopes on the blockchain industry, and we are all waiting for the ultimate blockchain that will define our future in the financial domain. Who will win the race? Will it be NEO, Qtum, Tezos, or Ethereum? Is there any possibility that something else, something new will pop up that will define the ultimate future of blockchain?
Let us find out what regarding blockchain the future holds for us?
We don’t have any specific answer as we really don’t know what the future holds for us all. All that we can do is to wait and watch and feel proud to be a part of perhaps one of the biggest transformations that the human being must have to go through. It might be that the future doesn’t appear any nearer, but, you cannot rule out the fact that the future is not very far either.
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