The development of any innovation ecosystem involves the passage through various stages that characterise it and define the growing circle of that particular industry. Similarly, blockchain development has also passed through three key stages, marked by landmark events that have transformed the nature of the technology.
Stage 1 of the industry saw Satoshi Nakamoto publish his white paper for Bitcoin in which he provided an outline of the cryptocurrency. Many industry insiders and technology enthusiasts are of the firm belief that the combination of blockchain and bitcoins provides for the most effective match. In its early days, it was bitcoin that
established the idea of a distributed ledger system that would lie at the core of the digital currency. As Satoshi envisaged it, bitcoin transactions take up about 1 MB blocks that are linked together by higher order cryptographic calculations and this is the basic premise that remains at the heart of the technology.
Stage 2 saw the advent of Smart Contracts that was innovated by Ethereum founders. They recognised the fact that blockchain had a greater potential than just processing transactions. It was realized that contracts, asset management, trust agreements could all benefi from the use of blockchain-based solutions. waiting to sieze the
The industry is on the brink of an uncertain but potentially bright future that is the third stage of this development. Bitcoin faces problems of time-consuming transactions and the existence of bottlenecks. Some fresh additions to the arsenal of virtual currencies have tried to enhance and transform their blockchain technologies in
order to address these problems of scaling. Going forward, the key issue that blockchain must tackle is to do with the scalability of the industry. Right now, we are seeing unique and novel developments in the blockchain industry every other week but it is still not known when we will be able to implement all these technologies. However,
members within the industry are extremely enthusiastic and excited about these developments and it is yet to be seen how much the blockchain tech scene grows.