Until now, the Blockchain World has continued to develop rapidly, with many new systems emerging, such as Holochain and Parachain, which shake the urgency of innovation.
Blockchain has reached version 3.0 which of course has been equipped with various innovations to be able to solve several problems.
About Blockchain 3.0
Blockchain 3.0 is a new term to describe innovation in the blockchain world, especially to deal with several existing problems, some of these problems are scalability, interoperability, and some arguments about data security and confidentiality issues.
Previously, Blockchain version 1.0 such as Bitcoin and Blockchain version 2.0 such as Ethereum had launched distributed LEDGER technology or DLT.
"And Blockchain 3.0 is the newest way to make blockchain grow taller, and make it easier for it to be more widely adopted".
To find out what Blockchain 3.0 provides as a solution to problems from previous versions, this article will describe some of these solutions.
1. Blockchain Scalability Solution 3.0
Until now blockchain still has scalability problems, especially with systems that still use Proof-of-Work (PoW) counseling. The blockchain that still uses PoW has scalability problems due to clogging of energy requirements in mining.
This scalability problem arises as a result of an inefficient system, where many parties focus on just one block, so it requires high energy, and in Blockchain 3.0, there is a solution to this problem, where Blockchain 3.0 uses several new things to solve the problem.
A. Using the Second Layer in Networking
Currently, there are several solutions with a second layer in the network for developing integrations.
The integration in question is in the form of network integration with existing blockchain protocols, this solution forms an effective system in moving transactions from the blockchain to the Peer-to-Peer (P2P) network.
The purpose of using this network is to remove blockages and increase efficiency.
Some Bitcoin (BTC) transactions currently have used the second layer in the network called the Lightning Network. Ethereum (ETH) has also started implementing a solution that is almost similar to what Blockchain 3.0 called Plasma.
B. Using a New Consensus Mechanism
On the other hand, several companies have also started to develop new solutions to this scalability problem from the very beginning.
For example, Zilliqa, which uses a sharding system and a new consensus system called Byzantine Fault Tolerance (BFT). Not only is Zilliqa implementing this system, several other companies have also implemented the same system as Zilliqa and are slowly starting to leave the Proof-of-Work (Pow) system.
Libra Facebook has also taken advantage of the Byzantine Fault Tolerance (BFT) system, while Ethereum (ETH) has moved to use Proof-of-Stake (PoS), and several companies have started using the Delegated Proof-of-Stake (DPoS) system.
C. Using the System of Directed Acyclic Graphs (DAGs)
Some projects that are starting to stay away from older versions of blockchain, such as HBAR, IOTA, and Nano, these projects prefer to use Directed Acyclic Graphs (DAG).
This DAG simplifies the efficiency of the performance of a network along with the growth of a network, DAG requires the party conducting the transaction to confirm several previous transactions.
So with this DAG system, actors in the network do not have to do one thing simultaneously but have a divided role.
2. Blockchain Interoperability Solutions 3.0
With so many blockchains that already exist, making the ability to communicate between blockchains even more difficult, until now there is no interoperability protocol to ease these difficulties on the blockchain.
However, currently, there are many who can solve this problem, but not with blockchain.
Aion, Holochain, Polkadot, and Wanchain are four major projects that have implemented interoperability solutions, which also want to be implemented on blockchain version 3.0, this solution will simplify communication between blockchains without the need for third parties, such as transactions between Bitcoin (BTC) and Ethereum (ETH) directly without any third parties.
The urgency of interoperability is not only high between blockchains but also needed between blockchains and public infrastructure, currently, the Chainlink company is trying to form a bridge solution between blockchain and the real world, through its oracle ecosystem.
Google, Oracle, and Swift have started to collaborate with Chainlink to try to realize this integration innovation plan, and later Blockchain 3.o will also implement the same system, which will facilitate bridging the relationship between the real world and the blockchain world.
3. Better Security Solutions on Blockchain 3.0
Almost all blockchains move openly, which means that our wallets and transactions will be very open to anyone who sees their history. And the average large organization, seeing this as a blockchain weakness, poses a problem for the blockchain, preventing it from being adopted on a larger scale.
Some cryptos have started to implement privacy systems into their protocols, such as Dash, Monero, and ZCash. There are plans to implement zk-SNARKs, the privacy protocol behind ZCash, to be implemented into Ethereum (ETH).
Some of these crypto projects do not appear to have been involved in the Blockchain 3.0 movement, but this is similar to what Blockchain 3.0 is trying to achieve, as an illustration of what Blockchain 3.0 really wants to achieve.
MimbleWimble appears to be one of the leaders in the privacy movement in blockchain 3.0 with its implementation via Grin and Beam.
MimbleWimble is a unique blockchain protocol, which replaces the address of the transaction history, with blocks containing only important and common data in transactions.
With this implementation, it is hoped that tracking transactions will become more difficult, and will facilitate the scalability of the blockchain. From a smart contract point of view, there are Aion and Wanchain, both of which implement layers of privacy.
This feature makes it easier for users to control what information they want to share publicly from the interactions they make, later this system will also be applied to Blockchain 3.0 so that this latest version can have more viable transactions and guaranteed security.
The Future of Blockchain Version 3.0
All the solutions previously described regarding the update to Blockchain 3.0 are still in their infancy, and there are still a few other crypto projects that haven't been discussed yet.
For now, it is still difficult to say which projects with blockchain 3.0 will be more successful than others, but currently, there are so many parties that are trying to develop this blockchain 3.0 consistently.
These parties have developed blockchain 3.0 with positive hopes for a decentralized future, so there seems great potential for removing some of the problems from the current blockchain, to become a more efficient and cost-effective blockchain for the future.
