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.
The challenge remains learning a new programming language
Whenever it comes to writing a smart contract, perhaps the biggest challenge that comes from the Ethereum developer/programmer community is the demand for learning a totally new language. There is no doubt that the syntax looks more or less very similar to JavaScript, but it is a different language all over. Moreover, you have to think of the problem solutions with a completely different mindset and understanding.
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.
NEO
NEO 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.
Qtum
This 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.
Blockchain: the new 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.
The disadvantages
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.
Blockchain
trends are believed to give the ultimate future
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 high expectations about the blockchain industry as a whole
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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See also:
- Cryptocurrency Payment Gateway Services
- Cryptocurrency Escrow Services
- Online Mode of Payment
- Online and Offline Payment
- Legality of Cryptocurrency
- Crypto Wallet
- Smart Contract
- Bitcoin and Cryptocurrencies
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