Blockchain Technology, Trilemma & Future
Blockchain technology was introduced in 1991 by scientists Stuart Haber and W. Scott Stornetta. The main objective was to produce an online solution to keep digital documents safe with time-stamping. But soon after its invention, this technology emerged with new trends and faced new challenges. Each challenge makes blockchain more complex yet more accurate and trustworthy.
We divided the journey of Blockchain into three parts as given below:
THE SLEEPING BEAUTY, 1991 TO 2008:
The Blockchain’s story is quite similar to t he The Sleeping Beauty. The princess in the story was sleeping for a long time, and no one knew about her. Similarly, Blockchain was discovered in 1991, but the world was unaware of it till 2008.
Let’s see the starting journey of Blockchain:
- Invented in 1991. Works on Merkle tree concept for block connectivity.
- In 1993 Proof of Work or PoW system was applied for reward distribution.
- In 2008, Mr. Satoshi Nakamota invented the Bitcoin Cryptocurrency. It was the first successful product of blockchain. Mr. Nakomota mixes the Hash cash PoW with software-controlled computing.
Now, bitcoin faces the market the world knows about the blockchain. This was the turning point for blockchain.
THE STRUGGLE PERIOD, 2009 TO 2019:
After the bitcoin release, blockchain attracted the world. As a new technology public, governments and corporates gave mixed opinions. This decade was full of struggles with acceptance, rejection, and ban.
- In 2009, Bitcoin was used as a reward given to the miners as a certificate of proof of work. Till 2013, 11 million bitcoins were mined and distributed.
- In 2014 Ethereum hit the market.
- In 2015 Smart contracts came into existence.
- Linux Foundation also releases Hyperledger.
- Both are blockchain-based applications.
- IBM started to work on blockchain-as-a-service (BaaS) offerings.
- In 2017, the Harward Business Review renamed blockchain “Foundational Technology.”
- By the end of 2017, 15% of global banks started work on Blockchain.
- Blockchain Observatory and Forum was established by European Commission.
- Facebook and amazon web services started to use Blockchain services. On the other hand, Google, Facebook, and Twitter banned cryptocurrency advertisements.
THE WORTHY TECHNOLOGY, 2020 TO THE CURRENT TIME:
After struggling in the last decade, Blockchain has made its space in the market. Now everyone is looking toward it with precision and hope. Blockchain is a trustworthy technology due to its mechanism.
- In 2020, PayPal started dealing with cryptocurrencies.
- Non-fungible Token or NFTs have come into existence.
- Metaverse, a digital online world, was proposed.
- On Oct 28, Facebook renamed Meta.
- Companies such as Nike, Walmart, Gucci, Ferrari, and Disney got on metaverse for creating and promoting their product NFT designs for avatars.
- The Indian government has announced a 30% tax on Crypto trading but does not allow them as legal.
- Blockchain technology reached the satellite communications in Space, Supply chain, Automation, Healthcare, Entertainment, Transportation, Real-estate, and many more industries.
But this technology has one major drawback. Blockchain is a continuous running cyber operation in which many hardware devices are used. This leads to the high consumption of electricity and increases global warming. So, most people are not in favor of this technology. Even China and Thailand banned cryptocurrency mining.
The Blockchain Trilemma refers to a widely held belief that decentralized networks can only provide two of three benefits at any given time with respect to decentralization, security, and scalability.
Blockchain is not just a currency mining platform. It’s a technology that is capable of becoming a foundation for the upcoming Web 3.0 Internet. Blockchain faces many challenges and successfully overcomes them. If, somehow, we can convert this technology into green technology, then it will be great. The world expects the Blockchain’s future prominence and progress.