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Third Generation of Blockchain
Last time we talked about the first and second generations of the blockchain. It's time to proceed with the next and talk about the third generation.
Some say that we live in the third generation, some believe we're on the brink of its end, but others claim that our era is already in the fourth generation. Nevertheless, the first two opinions accurately represent what is actually happening right now, as the technologies that characterize the third generation of the blockchain have appeared recently and are rapidly developing, mastering new opportunities.
The latest generation blockchains stood out due to improved technologies, their efficiency, and the correction of the mistakes of previous generations. One of the main distinguishing characteristics is — scalability. This is the ability of the circuit to increase throughput. If we take a look at Bitcoin and Cardano — blockchains of the first and third generations — their throughput is around 5 TPS and 1000 TPS respectively. And Cardano's throughput is expected to increase even more up to 1M TPS very soon.
Moreover, the latest generation blockchains are rightfully called “the Internet” due to their interaction with other blockchains. Due to this, making transactions has become much more profitable as well as less energy-consuming. Such energy savings are achieved by the development of new algorithms for verifying and confirming a transaction — like Ouroboros — or by using the PoS protocol when making one. In addition to the ability to interact and join blockchains, new smart contracts are created and apps are launched based on the circuit itself, and you can also write your own blockchain by choosing your preferred programming language.
Practice shows that blockchain systems are used by banks, for identity verification, cybersecurity, and even in medicine. In addition to Cardano — that we used to have a closer look at the latest generation — there are many other blockchains, which we will discuss in future articles. Stay tuned!