Bitcoin, Ethereum, and Polkadot Rivalry for Second Place? (New Entrants in the Market)

Proof-of-stake vs proof-of-work

A future beyond double-spending, the consensus mechanism

• To preventing users from printing extra coins they didn’t earn, or double-spending.

• For Bitcoin, it involves iterations of SHA-256 hashing algorithms.

• Importance of securing digital money by Hal Finney in 2004 through the idea of “reusable proof of work” using the SHA-256 hashing algorithm.

• The “winner” that solves the hash code needed to match the current block’s hash code, aggregates and records transactions from the “Mempool” into the next block.

Network Infrastructure: Adaptation of Blockchain

1. Bitcoin
Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network. Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part.

2. Altcoins (1st Generation – Ethereum)
Ethereum is software running on a network of computers that ensures that data and small computer programs called smart contracts are replicated and processed on all the computers on the network, without a central coordinator. The vision is to create an unstoppable censorship-resistant self-sustaining decentralized world computer.

3. Altcoins (2nd Generation – Polkadot, Link, G999)

Newly established altcoin projects such as Polkadot enables cross-blockchain transfers of any type of data or asset, not just tokens. Real-world integration of blockchain security, privacy, and information processing capabilities.

Developing the latest advancement in digital payment technology, G999 being a peer-to-peer electronic cash system that aims to become sound global money with fast payments, micro fees, and a new generation of high-capacity communication.

Getting Blocks: Types of Validation in Blockchain

Proof-of work

Nodes and networks using computational power, to solve and match hash codes achieving consensus in a decentralized manner. The shared load on the network makes it impossible to breach.

Bitcoin is a shared ledger, containing transaction records that use proof-of-work to validate transaction authenticity (a timestamp). Each ledger contains interconnected blocks that share an authenticity code (hash) collectively referred to as a blockchain.

Proof-of stake

Masternodes and networks working together randomly assigning the node that will mine or validate block transactions according to the coins the node wallet holds. The more coins in the wallet, the more mining power granted (far less resource-intensive).

Ethereum 2.0 makes use of staking, similar to the G999 project which started with staking. A consensus network all working together with public and private keys to validate transactions.

Decentralized Web 3.0 (Next step in connectivity)

Infrastructure which evolves 

  • Blockchain technology
  • a network architecture
  • Safe, permissionless, transparent network

Darcy Dinucci an informal architecture consultant coined the term Web 2.0 in the article Fragmented Future (popularized by Tim O’Reilly).

The expansion and integration of the user experience as a proof of concept would result in the interactive nature of online content and a new industry, mentioned by Darcy in Fragmented Future.

The underlining architecture would be the same however, websites and applications would allow anyone to create and share online information making everyone publishers. Today we see the advancement in content sharing technology with the architecture being used to facilitate financial transactions.

With decentralized technology, blockchains enable the adaption of the architecture itself in the form of decentralized networking. The creation of smart contracts and smart contract languages has proven itself to be Web 3.0 originally called the semantic Web by Tim Berners- Lee.

This autonomous intelligent, open internet where data will be interconnected in a decentralized way is a huge step in the advancement of the internet.

The rise of blockchain Ledger technology has pushed forward Web 3.0. Access to AI and decentralized technology has enabled a generation of interactive fully decentralized encompassing technology.

Limitless growth to maximize utility.

Darcy Dinucci

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