Blockchains are now well understood as more than just a platform for cryptocurrencies. The ‘blockchains to beat’ are those with powerful platform features, acceptable security, decentralization, and sufficient speed — these are the contenders for ‘blockchain 3.0.’
However, we believe it is time to move beyond blockchain as a platform and learn to see it as a business ecosystem. That is blockchain 4.0. Let’s see how blockchain 4.0 benefits businesses.
1. What is blockchain 4.0?
Blockchain 4.0 refers to the fourth generation of blockchain technology. It promises to provide blockchain as a commercially viable environment for development and running applications, ushering the technology into the mainstream.
Blockchain technology has showed obvious potential benefits for businesses, including security, automated record-keeping, immutability, and the ability to pay invoices, bills, and wages within an utterly secure framework.
Unfortunately, blockchain had previously failed to overcome several significant challenges: speed was far too slow, and only a few people possessed the specialized skills required to develop on the blockchain. Consumers, workers, and businesses expect web 2.0-like user experiences; blockchain was struggling to deliver web 1.0, with challenges familiar to the first generation of web pioneers.
Blockchains like Bitcoin are referred to as ‘blockchain 1.0’ because they were designed with a single purpose (supporting a cryptocurrency), are slow, and are difficult to use. One of the first post-Bitcoin blockchains would be Blockchain 2.0, designed to do more than support cryptocurrency; ‘blockchain 3.0’ would be a blockchain explicitly designed to support a wide range of activities and applications.
Blockchain 4.0 takes that aspiration and makes it a reality. If you can create apps that look and feel like web 2.0 apps, run as fast, and keep the unique benefits of blockchain technology, you have blockchain 4.0.
2. What benefits does blockchain 4.0 provide for business?
Businesses can migrate some or all of their current operations to secure self-recording applications based on decentralized, trustless, and encrypted ledgers under Blockchain 4.0. Most importantly, it makes blockchain’s fundamental, inherent benefits available to businesses for the first time.
Administrative tasks currently consume approximately one-quarter of worker time in businesses. Of course, these can be automated by adding a layer of ‘weak AI’ to your tech stack. However, on the blockchain, they are automated as a matter of course; it is built-in. The risk of data loss is virtually eliminated, an enormous relief given that the average business data breach costs $3.6 million. Furthermore, an immutable record implies that data is accurate, resulting in better forecasting and planning.
These benefits are built into all blockchain technology, but businesses cannot access them without the ‘4.0’ feature set.
There are, however, additional business benefits that are unique to blockchain 4.0 ecosystems. Businesses can use an Integrated Development Framework (IDE) to create their Dapps; cross-blockchain compatibility efforts mean that most Dapps will run on multiple 4.0-level blockchains. Joining a blockchain 4.0 project also gives businesses a say in how the project develops and access to developers and other resources.
Blockchain 4.0 focuses on blockchain innovation. As businesses across various industries adopt Blockchain faster, we should expect rapid advancements in the blockchain space.
Blockchain 4.0 promises to expand Blockchain as a business-useable environment for developing and running more advanced and mainstream decentralized applications. Blockchain 4.0 will prioritize speed, user experience, and usability by the public. If you need or want advice on blockchain development services, contact SmartOSC.
Contact us if you have any queries about Blockchain development services, dApps development, NFT marketplace development, Crypto wallet development, Smart contracts development.