What is a gossip log

Post-Blockchain: The Alternatives to Blockchain Technology

Blockchain technology can be used in a number of different ways. There are many different industries that can benefit from its use.

however, It doesn't just have to be about using a chain and not all blockchains work the same way.

Hopefully, by experimenting with blockchain technology and using it differently, issues such as scalability, speed, and security can be overcome.

Some algorithms use more than one blockchain, and recently some alternatives to the blockchain have also emerged.

Contents

Proof of work and proof of deployment

First, we need to understand that there is a fundamental difference in how most blockchains work.

Most cryptocurrencies use either Proof of work (PoW) or proof of deployment (PoS). You can read more about them here.

The main difference between the two is that PoW uses miners which makes it extremely safe but is also expensive as miners use a lot of electricity.

PoS doesn't require mining. Instead, the validation of a block depends on what a person's stake is or how many coins they own and how old the stake is.

Public and private chains

You probably know that most cryptocurrencies work with a distributed ledger.

In most cases, this ledger is completely open to the public and anyone can view transactions between different people.

The advantages of this technology are that it prevents fraud and double spending.

However, not everyone wants all transaction information to be public. There are many who view such transparency as potentially dangerous.


To counteract this, there are private chains. However, these are not only used for cryptocurrency, but can also be used by private companies who want to keep information in their organization.

Hybrids

These are blockchains that Take advantage of private blockchains with public blockchains. In such cases, these blockchains can be “approved” but at the same time public.

There are also many different variations of PoW or PoS that borrow functions from one another.

As new cryptocurrencies keep appearing, various blockchains continue to be developed that use different elements from existing cryptocurrencies.

While trying to take over the best parts, it doesn't always mean that what is introduced is better.

Side chains

Sidechains, or childchains, are essentially secondary blockchains that work in conjunction with the primary chain.

There are now several blockchains that use a second chain Handle things like smart contracts.

That way they can Increase speed and scalability by removing smart contract functionality from the primary blockchainwho can then focus specifically on transactions.

Side chains can also be used for other purposes. Multiple chains can interact with the primary chain, each used for a different purpose.

Some of these purposes may specifically relate to different payment types or even dApps that can be built on the blockchain.

Perhaps one of the best ways to use sidechains is for smaller transactions and the primary chain for larger transactions. This can make transaction fees and times fairer.

This is because larger transactions in a larger chain can take longer and small transactions can be faster.

It can also eliminate the problem that larger transactions are preferred to smaller transactions during the validation process.

Sidechains or childchains could be a viable way to handle the scaling and help blockchain technology handle the traffic as the network continues to grow.

Post-Blockchain: The Alternatives

Just as you thought blockchain couldn't be more confusing, a new variety of different cryptocurrencies and consensus algorithms are emerging that claim to be better than blockchain.

Could they be the fourth generation of cryptocurrency? Who knows, we may have to unlearn everything we know about blockchain.

IOTA’s Tangle

IOTA is a cryptocurrency that works without a blockchain. Instead, it uses what it calls the tangle that is a "DAG.

DAG stands for Direct Acyclic Graph and uses topological order to organize data structures.

For every transaction added, the tangle confirms two. Theoretically, The more transactions that take place on the network, the faster it gets.

Each connection is called an edge. The transactions are confirmed here. In theory, there is no direct line in the tangle, but new transactions are always at the end of the chart.

Transactions are also known as "websites" and the end is known as "tips". They are waiting to be verified by the next transactions that follow them.

The longer a transaction is accepted on the network, the more difficult it becomes to double-spend.

Because of the way the tangle works, it's very easy. It means that Any computer can process transactions if it has an internet connection.

And that's exactly what IOTA wants to use. Devices that use the IoT (Internet of Things).

In their grand scheme, any device using the IoT can act as a node and facilitate transactions.

The tangle also doesn't have any blocks that require miners to work on. This makes transactions cheaper as they don't have to be mined.

Plus, because theoretically, the more transactions take place, the faster it gets should be more scalable than blockchain also.

criticism

Some are critical of DAGs because they may not be able to prevent duplicate spending and 51% are more open to attacks.

Actually, Only 34% of the network needs to be attacked for the tangle to be controlled'That makes it a lot more vulnerable than blockchain.

DAGs are also not suitable for smart contracts because it is difficult to determine the order of the transactions.

It's a lot easier with blockchain because you have blocks that come one after the other and it's very easy to see. DAGs may need a second layer for intelligent contract functions.

There are also No incentive to be a node on the network because you don't get anything. With blockchains that require mining, the incentive is that you can make money mining.

DAGs have also been around for over 30 years, and as a concept, they're not that new. People are already aware of their limits.

Blockchain technology is much newer and overcomes some of the problems DAGs face.

While IOTA does some things very well, they do too suffered from several bad PR events they didn't help their cause.

Hash graph

Hashgraph is another alternative technology to blockchain that claims to do things better.

They claim they do can process 250,000 transactions per second'That's more than ten times what Visa is capable of.

You want to be one Voting algorithm, not PoS or PoW, which they say are fairer and less centralized.

Transactions are handled asynchronously, which means that transactions do not have to wait for other transactions as with PoS or PoW.

Also, miners with PoW can choose which blocks to mine based on the reward they receive, allowing them to skip previous blocks when the reward for mining is lower.

Hashgraph uses what is called a "gossip protocol". This is done to overcome the bandwidth problem with voting algorithms.

Since everyone has to communicate with each other, the bandwidth is heavily used.

The Gossip Log simplifies this process by randomizing it. Instead of every node talking to every other node at the same time The node is communicating with another node at random.

They call this "gossip about gossip". Each node shares everything it has seen with another node. Effectively sharing other people's gossip.

Mathematically speaking, a consensus is eventually reached because all information is shared and bandwidth is saved and not overburdened.

Hashgraph thinks so too This protocol is cheaper because it does not require mining.

To top it off Hashgraph may also be more secure than blockchain technology. To successfully attack the system, you would have to attack all members at the same time.

Such an act is essentially impossible and would be very expensive.

criticism

There are problems with Hashgraph, however. Perhaps the greatest being that it is patented technology from Swirlds.

This can mean that it will simply be a tool for businesses rather than the masses.

It is also not considered decentralized or open source. To use it, you need to request an SDK (Software Development Kit).

The algorithm itself is decentralized, but the Swirlds company or the ownership behind Hashgraph is not.

Another problem with Hashgraph is that it is does not keep historical records of all transactions. Over time, they will be removed.

Critics say this could be a problem as it would be more difficult to prove that transactions took place in the past.

Holochain

Holochain also doesn't use PoS or PoW and is a Agent-centered system.

It is so different that as a user you will have to unlearn many of the concepts related to blockchain and cryptocurrency.

Technically, there is also no consensus mechanism. Instead there is what they call DNA and there is not a single ledger.

How is it agent-oriented Every developer has their own consensus and rules for their part of the system.

As an agent, you have all your data stored in a hash chain so that you can control and keep track of your identity.

Holochain is alleged good for building dApps, This seems to be their main focus and could effectively make them a rival to Ethereum.

Holochain is effectively a framework for developers who can create their own rules for what they create on and on The more popular a dApp becomes, the more hosting performance it gets.

Like hashgraph, Holochain also uses a gossip protocolHowever, you refer to it as the "immune system". This is used to stop bad actors.

Holochain's scope is bigger than just dApps. In a way, they want to revolutionize the internet. Holochain was designed that way Developers can create their own blockchain on their system.

Holochain works in a similar way to torrents. Distributed hash table (DHT).

Instead of gathering information from everyone on the network, information is gathered from just a few nodes. Achieving full consensus is not the goal.

Holochain also doesn't have a native token for the network. Instead, it has Holo Token (HOT) These tokens are given to nodes for hosting dApps.

The value of Holo is determined by the computing power of the network and The amount of holo can expand or contract depending on the needs of the system.

criticism

Some are skeptical of Holochain The technology is giving too much responsibility to the developers that they may not be able to handle it.

There are already many problems with blockchain technology that are not yet addressed. When developers take on more responsibility, it can lead to more problems.

Others are concerned about Holochain's immune system and aren't sure it can hold off bad actors.

It is even possible for these bad actors to take over the immune system and run it themselves.

Are we already seeing the end of the blockchain?

No'It's too early to say such a thing.

Blockchain technology itself is still very new and has a long way to go before it is adopted by mainstream users.

We still have to see how effective it will be in day-to-day use for the general public and which variant of the blockchain works best.

And while there are alternatives to blockchain with some advantages, there is currently no clearly improved version of blockchain technology.

Important points

If you remember anything from this article, make it these important points.

  • Blockchains can work in a number of different ways. They can be PoS or PoW, public or private, or a hybrid of any of these types.
  • Some cryptocurrencies use sidechains. You can manage various functions like smart contracts and improve the performance.
  • There are alternatives to blockchain technology. There are a variety of other ways cryptocurrencies work.
  • It is far too early to predict which alternatives will last. Blockchain itself is still very new and has a long way to go before it becomes mainstream.

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