People are crazy about blockchain technology. Many factors make them unique. When it is introduced, there is a significant change in a small period. People like this technology because of its many advantages. It is a secure and efficient technology. It has various features, such as immutability, decentralization, security, and many more.
Blockchain technology is decentralized, distributed ledger technology. This technology helps to record transactions efficiently and its assets in its business network. There are various versions of blockchain technology.
It stores every transaction in a chain of blocks. It is a form of digital record of every financial activity. Multiple sectors can use this technology, such as healthcare, finance, retail, banking, and many more.
Version in Blockchain Technology
It has four versions so far, from 1.0 to 4.0. These versions help people to know how they start and their progress.
Cryptocurrency: Version 1.0
In 2005, Hall Finley presented it, which contains DLT. Cryptocurrency uses this Distributed Ledger Technology. It is the most usable way of using this technology.
Bitcoin is a novel application that is based on cryptocurrency. Many cryptocurrencies are now used for transactions and investments.
Satoshi Nakamoto, or a group of people who used the pseudonym, created it. The primary reason for its creation is to eliminate third-party interference in investments and transactions.
A blockchain is a form of “Internet cash,” or a digital payment system. It is developing into the “Internet of Money,” such as the Internet of Things (IoT). Bitcoin and its predecessors may revolutionize currency, trade, and business.
Smart Contracts: Version 2.0
Nick Szabo coined the phrase “Smart Contract” in the 1990s. It is written with the help of different codes. The instructions are also designed. It is crucial to follow these steps to make the process secure, transparent, and accurate. Despite its profitability, Bitcoin has some disadvantages, including wasteful mining and scalability issues.
We solved this problem with version 2.0, which is an autonomous computer program. When its conditions are matched, it is automatically executed.
To reduce the chances of error, we execute these contracts on the blockchain. Its primary concern is to reduce transaction costs and time. This process is secure and there are fewer chances of theft and fraud.
Using cryptographic algorithms adequately protects clarity in transactions. We also use it in different sectors, such as trade finance, supply chain management, property ownership, and many more.
Version 3.0: Introduction to DApps
Smart contracts are the basis of decentralized apps or DApps. Users can interact with packages through smart contracts. The process of making these apps is the same as making traditional apps. The frontend of an app can be any language, and its backend code runs on a decentralized peer-to-peer network.
DApp is a network-agnostic app that uses blockchain technology. It is based on decentralized storage and communication, such as Ethereum Swarm. There are many examples of DApps such as BitMessage, BitTorrent, Tor, Popcorn, ForkDelta, CryptoKitties, Bancor, Ether Shrimp Farm, PoWH 3D, Moon, and many more.
Version 4.0: Industry
Its latest version is for various industries. We use blockchain technology in healthcare, supply chains, finance, and many more. It helps in diverse business transactions and requirements.
The primary reasons for its popularity are security and stability. People have trust in new emerging technology. Blockchain developers use the latest technology so it can become more efficient and green.
Investors are using this technology to make their investments. It becomes notable in a short time. Many new currencies are coming every day. People adopt this technology because of its scalability and security.
There are some detriments, such as transaction costs being pricey. It is not environmentally friendly. Many new ways are used to make them green and secure.