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Similar to the internet, which was at one point underrated in the early 1990s, it can be difficult to accurately predict the impact that blockchain technology will have on businesses in the coming decade. Regardless of the regulatory uncertainty, a handful of businesses are working relentlessly behind the scenes – building applications or streamlining an existing process in a bid to discover a use-case that derives value from a distributed ledger technology.
Despite the recent global financial turmoil paired with the pandemic stirred by the Covid-19 virus, the cryptocurrency industry is growing, despite market volatility. Developers around the world are building on blockchain and this trend is certainly not slowing down, as developers are embracing the constantly evolving technology. Just like running traditional IT solutions, there are several development phases for blockchain. We are currently in the third phase of innovation, blockchain 3.0.
The first generation of distributed ledgers, blockchain 1.0, was marked by Bitcoin, the digital currency that challenged the fundamental aspect of monetary centralization. Since then, the industry has been growing at exponential rates as BTC has brought the digital gold narrative back to life with enthusiasts regarding it as the most decentralized form of a digital asset class.
As much as it is a good thing, Satoshi’s network has been seeing bottlenecks; to the point where Bitcoin transactions take close to 10 minutes because of the congestion in transaction volumes. This was a huge setback, as Bitcoin’s scalability problem has limited the rate at which the Bitcoin network manages to process transactions, sparking a race among startups who have embarked on the quest to solve the nascent digital currency scalability problem.
Apart from financial transactions, blockchain 2.0 with the creation of cryptocurrencies such as Ethereum went beyond the…