Blockchain 2.0

If Bitcoin was blockchain 1.0, the advent of Ethereum was blockchain 2.0.

It began with a young man named Vitalik Buterin who wrote for Bitcoin Magazine. He proposed adding a scripting language to bitcoin which was rejected. So he dropped out of college and built ethereum instead. Ethereum has a 15 second block time and is the second largest cryptocurrency by market cap.

Ethereum represents a continuation to blockchain evolution. Smart contracts were a concept prior to the blockchain, but Ethereum made them a reality. Smart contracts are programs which self execute on the blockchain. As the blockchain is a public ledger, it makes it possible for anyone to audit the contract.

The benefits are numerous. Traditional contracts take time to create and lawyers are often involved as the language needs to be very specific. Smart contracts can be created quickly and run on computer code so no lawyers are needed. Payout through the traditional banking system can take time, and sometimes parties simply refuse to pay. This isn’t a problem with a smart contract as escrow is handled by the contract.

Smart contracts have many different real world applications. For the government, the census and voting can be done in an open and honest way. In business, insurance, record keeping and trade are all made more efficient. There are many use cases which are not initially obvious. For example, smart contract based lease agreements are used for small plots of land in urban farming scenarios. Another example is with organ transplants, where contracts are used to match donors with recipients.

Another benefit is Tokens. They look and act like different cryptocurrencies, but they’re on the ethereum platform, so the developers don’t need to completely reinvent the blockchain. Well known ethereum tokens are Tether, USD Coin, Uniswap, Wrapped Bitcoin, Chainlink and Aave.

Finally, there’s non-fungible tokens (NFT’s). We’ll cover these in a future blog.

As for thenewboston coin, we are not a token and have completely redesigned the blockchain. Rather than having a 15 second block time, transactions are instant. It’s also possible to have feeless transactions. Imagine all the use cases where the added speed and negligible transaction fees will change the game. 

We all expect internet purchases to be instant. Currently when buying something with bitcoin online, the purchaser has to wait for the block to update and then many vendors insist on waiting 6 blocks until they deliver their product. With a blockchain that delivers in 0.015 seconds, commerce can take place at the speed of a credit card.

How about account verification? Why not use the blockchain to log in and out of web services? This isn’t possible with a blockchain with a lag time, but when it’s instant, the benefits are endless!

It’s also possible to earn coins by contributing to thenewboston blockchain platform. The system is set up so that the only way coins are minted is through work. By creating a project and adding value, new coins are brought into existence. Check out https://github.com/thenewboston-developers/Projects and https://thenewboston.com/projects/overview for more.

1 comment

Leave a Reply

Previous Post

The History of Money

Next Post

Non Fungible Tokens

Related Posts