Blockchain 3.0 & The Future of the Decentralized Internet
Blockchain technology has seen a flurry of new innovations and a wave of adoption in the last few years. Looking forward, blockchain technology will continue to integrate with the new, decentralized Web 3.0 stack and become an integral part of the future Internet.
Bitcoin brought us Blockchain 1.0, and Ethereum brought us Blockchain 2.0. Now, Blockchain 3.0 technology is on the horizon, bringing with it a new paradigm of Internet infrastructure, interoperability, and scalability.
At Sara Technologies, we are excited about the future development of Blockchain 3.0 and its integration into Web 3.0 models. Our goal is to provide you with the tools and framework to join us in building the future decentralized Internet.
Problems Facing Blockchain Technology Today
The problems that have faced Blockchain 1.0 and 2.0 iterations are well established and have been limiting factors to their mainstream adoption and acceptance for their true potential. Primarily, these problems stem from limited functionality in the following areas:
- Adoption & Familiarity
Scalability is probably the most prominent issue facing blockchain systems today. Bitcoin is currently limited to its on-chain transaction throughput of roughly 7 transactions per second (compared to Visa’s ~24,000 TPS), while Ethereum is facing problems in its distributed computing network, creating prohibitively high gas fees and slow transaction confirmation times. There are solutions to these issues that have been in the works for quite some time now, but these issues are limiting mainstream adoption of the technology.
Interoperability is in its nascent stages still and can be compared to the early days of the Internet, where interoperability and communication between networks were growing but still restricted. Right now, it is difficult for disparate blockchains to communicate with each other. Standardizing formats for communication between different protocols will be an important step in helping to improve scalability as well.
Governance structures in blockchain networks, particularly public blockchains and cryptocurrencies, are one of the more fascinating concepts as the industry develops. While Bitcoin maintains governance with a strong dynamic between miners, businesses, and users, other models will be necessary as these networks grow. The emphasis on decentralization in the industry makes these models of governance notoriously difficult to implement, and their success relies on sustainable models of game theory and economic designs.
While the privacy of transactions was initially conceived as one of the foremost features of Bitcoin, it is now well known that Bitcoin transactions are only pseudonymous. Reducing the fungibility of cryptocurrencies by being able to track transactions and addresses presents problems for many users who use those networks for their perceived privacy. Privacy-focused cryptocurrencies will always have their supporters, but implementing the right combination of technologies and assuring users the network is truly private has been difficult to achieve so far.
The sustainability of blockchain systems is an aspect that can be easily identified with popular cryptocurrency platforms Bitcoin and Ethereum. However, when you look at the numerous altcoins available today, it is just as easy to realize that many of them exist for only a few months or years before disappearing, taking with them investor funds. The regulatory framework for the industry is essentially non-existent at this junction. With more familiar regulations in place for ICOs and developments in better sustainability models of platforms, the industry should be able to demonstrate a much more mature nature than its current state.
Finally, adoption and familiarity with the underlying technology are severely lacking. Mainstream users familiar with traditional applications do not understand the benefits of decentralized applications, only that they cost money and are not scalable. Using Ethereum is beneficial to those who understand how to use it, but it is rather complex at the moment. Adoption has further been stifled by a lack of regulation, where users are left feeling timid about diving into space.
The Rise of Blockchain 3.0 and A New Wave of Innovations
While these problems facing the industry are well established, there is no shortage of innovative solutions being applied to them. The rise of Blockchain 3.0 technology is here, and with it, a new wave of innovations and decentralized applications will become part of the vital architecture of Web 3.0.
Below, you will find some current solutions and future plans for building on previous iterations of blockchain development services technology and fostering a new era of adoption.
Current problems of Ethereum’s scalability aside, there have been many significant advances in scalability as part of the new wave of Blockchain 3.0 platforms and technology.
Zilliqa uses transaction and computational sharding as part of a blockchain network that can scale to thousands of transactions per second. More secure and efficient programming languages such as Scilla and Vyper are being implemented to facilitate better smart contract designs.
Blockless blockchains using Directed Acyclic Graphs, such as IOTA, are on the cusp of scaling to practical levels for the future Internet of Things. New consensus models such as Proof of Stake, Delegated Proof of Stake, and Proof of Authority are being researched and implemented as new methods of blockchain consensus.
In Bitcoin, off-chain (layer 2) solutions like the Lightning Network are already live and showing promise as future scalable solutions to transaction capacity on the network.
Ethereum is researching and implementing the first stages of their scalability solutions, too, with Casper, Plasma, and their state sharding plans all in the works to become a reality over the course of the next few years.
There are several platforms focusing specifically on the interoperability of blockchain systems, such as Block Collider, Wanchain, Neblio, AION, and ICON. Wanchain plans to implement private cross-chain smart contracts and remove centralized counterparty risks.
They hail themselves as the next-generation Blockchain 3.0 platforms focused on connecting various protocols, smart contracts, and transaction models.
Open protocols for decentralized exchanges such as 0x are already live, focusing on the future exchange of different tokens, whether they are on the same platform or not. Atomic swaps show promise as the solution to providing liquidity to such decentralized marketplaces.
Even gaming has shown significant advances in interoperability with decentralized, non-fungible token exchanges such as WAX and new smart contracts for token assets such as ERC-1155 that may eventually allow for tokenized assets to be stored on various blockchains and different gaming networks.
As blockchain networks continue to grow, governance models focused on open protocols and decentralized community governance have continued to develop. Tezos, the self-amending blockchain platform, allows the community to edit the underlying protocol through voting, changing the voting mechanism itself or specific platform parameters.
Standards are being proposed and built on Ethereum, offering a similar development to the early stages of the Internet. Dispute resolution layers are developing on both Ethereum and standalone blockchain networks. Platforms such as Kleros provide decentralized community governance of disputes and resolutions.
Privacy will always be at the center of attention for many in the cryptocurrency community. Some of the industry's most groundbreaking and bleeding-edge advances have come in the form of privacy developments.
Technologies such as zero-knowledge proofs, ring signatures, and implementing I2P and Tor functionality in cryptocurrencies have significantly advanced transaction obfuscation and user privacy across networks.
Monero, a decentralized, community funded and privacy-focused cryptocurrency, has incorporated numerous features into its platform, including ring signatures, bulletproofs, and egalitarian mining policies in order to subvert centralization.
One could say that sustainability in the industry will inevitably be a result of the above solutions being implemented as part of the future Internet. However, as with the development of all technology, the best will emerge as the leaders and a regulatory framework that offers a lower barrier to entry and comfortability to mainstream users.
Pending regulation by the SEC on ICOs and the classification of tokens will enable a flood of institutional investors to join the industry, facilitating financial growth and accelerating funding for technological developments.
Adoption and Familiarity
As a result of the advances and the new wave of applications brought about by the Blockchain 3.0 era, mainstream users will simply not need to understand the underlying technology anymore to interact with blockchains and the new Web 3.0. Instead, user interfaces and applications will look the same on the front-end, although being vastly different on the backend.
Decentralized applications will no longer be prohibitively costly or complex. The tangible use cases of such applications will finally be realized, and a whole new wave of dApps will be introduced to the application ecosystem.
All of this will be part of a new paradigm of the Internet, a decentralized, global network predicated on open protocols and decentralized governance rather than centralized data control and monetization of content. Blockchain 3.0 will play an integral part in that development, and at Sara Technologies, we are here to help you join the movement.
The Decentralized Internet Stack
The Blockchain 3.0 era will usher in a new wave of innovation that will become a vital Web 3.0 technology stack component. By providing models for open protocols, communication, scalability, decentralized governance and payment models, and distributed data storage/integrity, Web 3.0 will look vastly different than the Internet today.
As you can see, decentralized applications will function as the interface layer for many users of the new technology stack, while blockchains and their open protocols will function as the underlying architecture for those interfaces to interact with.
At Sara Technologies, our experts are experienced and knowledgeable in all phases of the new Web 3.0 stack, and we look forward to working with you every step of the way, providing the solutions that your business needs to grow and develop as a part of the new Internet paradigm.
Sara Technologies & The Future of Blockchain 3.0 & Industry 4.0
Sara Technologies offers something that is not readily available in the current blockchain and cryptocurrency space. We have an extensive and talented team focused on creating innovative and forward-thinking solutions for the development of Blockchain 3.0 and Industry 4.0 technology.
Innovation and implementation of blockchain technology are largely limited to individual platforms, focusing on their own growth and development. We offer a suite of services for all aspects of blockchain and cryptocurrency development by implementing scalability solutions to integrating privacy features into your network.
We can help bring traditional companies missing the expertise and technology to participate in the new decentralized economy to the forefront of innovation. We give you the tools to be at the leading edge of one of the most important technological revolutions in recent history.
With us, you can help to build the future and participate in the lucrative new Internet that awaits.
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