There is no doubt that blockchain is indeed an incredible invention and many tech experts believe that it could be the most significant development since the dawn of the internet. One thing is for sure and that blockchain is going to have a pretty significant impact on the world around us over the next few years and it is expected that this technology will infiltrate almost all sectors of our economy.
In short, blockchain is a digital, distributed, and immutable network that does not require a centralised authority to control it. It is a global ledger that function via a network of interconnected nodes that are universally accessible.
This was the first blockchain that was created by Satoshi Nakamoto. Designed to run Bitcoin, blockchain 1.0 keeps a detailed record of all transactions and then updates these transactions across all nodes.
This version of blockchain is a step up from blockchain 1.0. It was created by a Canadian student called Vitalik Buterin and it is popular because it facilitates the execution of smart contracts. Smart contracts are self-executing contracts that can take place between two or more individuals or entities. These contracts are able to manage, run, verify, and execute a range of transactions. Ethereum, the world’s number 2 cryptocurrency runs on this blockchain network.
IOTA – the third generation blockchain
This is the world’s most advanced blockchain platform. A third generation, immutable, digital network that uses an extremely advanced data structure known as Tangle to facilitate transactions. Tangle is known as an idiosyncratic data structure that uses a Directed Acyclic Graph. You can describe IOTA as an open source, permissionless, distributed ledger which is superior in almost every way to blockchain 1.0 and blockchain 2.0. The Tangle does not store information in blocks, but rather in adjacent nodes meaning it doesn’t grow in size as the blockchain does. The platform uses IOTA tokens to power the transactions that take place over the network.
One of the ways in which Tangle is superior to blockchain 1.0 and 2.0 is that it is scalable. One of the main drawbacks of previous blockchains is the fact that there are limitations on the supply and network scalability. Tangle is infinitely scalable and can grow to a truly astronomical size. Secondly, Tangle does not charge its users any fees. It is also fork-less which means it will always run in this way without the threat of a fork out. It is also completely immune to hacking and any other form of cyber attack and its integrity is impossible to breach.
Tangle is widely expected to become the next generation network for all cryptocurrency transactions. It is also a preferred network as it is fast, scalable, impossible to breach and it is also pegged to play a big part in the 4th Digital Revolution. Tangle and its token IOTA is going to power the future through the Internet of Things, Internet of Value, and of course, to run smart contracts.
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