On January 3, 2009, Satoshi Nakamoto mined the Bitcoin Genesis Block and unleashed the greatest technological breakthrough of the century. Bitcoin (BTC) was both software, a “protocol”, a network, a development team and something new called cryptocurrency. At the same time, cloud computing demonstrated that abstractions and APIs can significantly contribute to product scalability and speed, eliminating all distractions that prevailed in 90% of the application’s technical packages.
Despite dozens of competitors that have emerged since the inception of Bitcoin, almost all have merged vertically, and none of them have led to the same changes in products as the cloud. Networks such as Ethereum and EOS have broken this standard by providing a “platform” for the emergence of many different public blockchain networks – but what is behind it?
To answer this question, we need to define what blockchain is at its most atomic level. Bitcoin and its successors such as Ethereum and EOS provide many technical features such as peer-to-peer gossip networks, decentralized consensus mechanisms and crypto-supported “ownership”. These are not necessarily new technical features, they were previously hidden doors to many products that failed to create a value level for bitcoins.
Furthermore, it is a mistake to define any blockchain based on the purely technical characteristics, due to which the technology is only for technologists. For example, for non-tech people, the most notable feature of Bitcoin is that it creates and manages Bitcoin, a digital currency that you can own that is rare and resistant to duplication and counterfeiting.
On the other hand, the cloud is inherently (and aptly named) mysterious and abstract. The cloud has broken down the modern application stack into features (or things you can do), placed them behind APIs and offered them as selective services. This innovation has resulted in impressive flexibility in the development of new products. Development teams that were about to collapse under the weight of the total infrastructure and system administration costs were exempted from understanding what was inside the black boxes of architectural plans. This led to a significant shift in the industry and ultimately to an explosive growth in the number of customer-focused products and services.
Developing applications for the cloud relieves developers of interesting but ultimately less valuable issues, such as partially optimizing the choice of database parameters or how servers solve more important issues related to their product. By extracting these technical details and considerations at the heart of a functional set of services, you can focus on how unique your product is to the competition, rather than on the worldly aspects of launching a modern application package. If this abstraction model has helped companies launch several different products, what functional services will blockchain applications need to achieve the same result?
There are many ways to answer this question, but we will focus on two possible approaches: horizontal functional levels and high-level types.
Within the horizontal functional layers, a blockchain such as EOS or Ethereum can be seen as a computer system that can perform hundreds or thousands of valid smart contracts that can be demonstrated, a storage system that provides globally consistent data, strong authentication. system and service of inquiries to resolve disputes between operations. To ensure parity with existing blockchains, each of these levels is audited independently. From this point of view, concepts such as mass production and consensus protocols do not look like separate layers because they do not provide anything beyond implementation details for other layers. This indicates that if there was another way to achieve these functional services, a cluster or peer-to-peer network may not be required.
An alternative approach might be to look at high-level concepts or guarantees and implement them as services. For example, among the many problems that cryptocurrency has to solve is the problem of dual use. If a person had a bitcoin and used it, he would not be able to use it again. Conceptually, this seems basic, but in a globally decentralized computer system, it can be difficult to effectively maintain such a guarantee. A service that provides this concept so that it can be easily integrated into all applications, will remove all the complexities of the blockchain and enable the detection of applications that bypass cryptocurrencies more efficiently.