Blockchain 5.0: Here’s Why We Need it Today
Many people have heard about blockchain and cryptocurrencies like Bitcoin or Ethereum. These two were based on Blockchain 1.0 and 2.0, i.e., the first two generations, respectively. The question is- what led to the rise of generation 3.0 and 4.0, and why do we need another generation with more improvements, i.e., blockchain 5.0?
Blockchain Then and Now
The world’s first operational cryptocurrency that was implemented on a large scale was Bitcoin. Since it was based on the first generation blockchain i.e., blockchain 1.0, it had its limitations. The biggest one was the maximum number of transactions it could handle in a second, which was only 10. With the second generation, popularized by Ethereum, the rate was increased twofold to 20. This was a decent improvement, but still not enough for the technology to be used by a large number of users across the globe. This is why the third and fourth generations i.e., blockchain 3.0 and 4.0, were designed to handle up to 900,000 transactions per second.
To take the blockchain technology to the masses and get the private and public sector organizations interested in it, it was essential to improve the transaction rate further. This was achieved in blockchain 5.0, and Relictum Pro, which is paving a robust foundation for the technology, was able to achieve over 1,000,000 transactions per second!
Older generations of blockchain were based on P2P networks, i.e., the nodes were connected to one another, and data was transferred across the Internet. This restricted the data transfer rate, and delays in transactions were also observed frequently. Again, this is where blockchain 5.0 came to the rescue. For instance, Relictum Pro creates virtual nodes on top of existing Internet connections, which allows its data to be transferred across these dedicated connections. This way network congestion is minimal and delays are infrequent.
The following are some of the biggest reasons why blockchain 5.0 is much-needed in Today’s world that’s increasingly becoming digital:
The blockchain technology must be capable of handling a large volume of transactions so that viable and scalable business solutions can be created for financial services, tokenization of assets, etc.
There are many existing blockchain products based on distributed ledger technology that use traditional Internet connections and create unnecessary congestion. However, Relictum Pro uses blockchain 5.0 to create virtual channels along with this network so that blockchain data can be sent across this dedicated network. This gives a massive boost to transfer speeds and creates a seamless system.
Advanced consensus protocols are necessary for high security. For instance, Relictum Pro uses its own consensus algorithm called Proof of Tsar (PoT) to protect the system from hash collisions and other risks.
Studying the information above, it’s easy to see that blockchain 5.0 has immense significance Today. As soon as new products are launched that successfully implement the technology, like Relictum Pro, we can expect a surge in the popularity of associated services.
