Blockchain Classifications: Unraveling the Intricacies
Date: 2023-10-04 Author: Dima Zakharov Categories: BLOCKCHAIN
Blockchain technology has evolved significantly since its inception. The article delves into the nuances of blockchain classifications, emphasizing the importance of understanding these distinctions in the ever-evolving crypto landscape. Bitcoin, which marked its second decade since the first hype in 2013, has seen many changes over the years. The article stresses the importance of moving beyond standard classifications that are no longer standard.
The piece provides a brief overview of the basics, highlighting that Bitcoin was the first cryptocurrency based on blockchain. However, the term "blockchain" was not mentioned in Bitcoin's White Paper. It was a term introduced by the media to simplify the understanding of the technology. The article then delves into the gradation of blockchains based on generations. The first generation includes Bitcoin and its altcoins like Litecoin. The second generation brought in chains with smart contracts, like Ethereum. The third generation is referred to as specialized blockchains, with examples like Solana focusing on speed and Near on scalability.
The article also touches upon the potential existence of a fourth generation, emphasizing the evolution of Bitcoin's blockchain over the years. It discusses the challenges and solutions of the blockchain trilemma, highlighting the importance of smart contracts in the second generation. The third generation, on the other hand, focused on specialization, with blockchains like Solana chasing speed and Near focusing on scalability.
