Written by Scott Craig|Posted on December 30, 2022
Blockchain technology, initially made famous as the basis of cryptocurrency, is making its way into a variety of industries. The basic premise of blockchain—that of a decentralized distributed digital ledger secured by cryptography—is proving to have applications in finance, logistics, contracts, governance, data management, and other fields.
The growing popularity of blockchain is also raising awareness of the technology’s limitations. Even with the dramatic growth of blockchain software development, a large-scale decentralized app has yet to challenge the established, centralized tech platforms such as Amazon or Meta.
The Ethereum network was created as a basis for decentralized app development, but a 2020 report from Decrypt revealed that about 70% of Ethereum nodes were dependent on centralized services such as cloud providers. Traditional blockchains also face a fundamental scalability problem and struggle to handle the large-scale apps necessary for a truly decentralized Web3 to form.
One model to overcome current blockchain shortcomings is the Internet Computer (IC). IC is a layer-1 blockchain that runs thousands of large-scale dApps on its chain, including DeFi, smart contracts, games, NFTs, and Web3/metaverse projects. The Internet Computer may be the world’s fastest blockchain network, leveraging subnet blockchains of powerful data centers from around the world to ensure fast operation and lower gas fees.
The IC network uses an open tokenized governance system called the Network Nervous System (NNS), which facilitates the establishment of large-scale decentralized enterprise apps, and is also responsible for maintaining the integrity and security of the network. Its reverse-gas architecture ensures that smart contracts pay for themselves, rather than the users. This allows for the delivery of interactive web content, the minting of NFTs, and the running of large-scale apps in a smooth, cheap, and scalable fashion. It also allows anonymized, cryptographically secure online identities for users.
Solutions like the Internet Computer are proof that blockchain is on its way to overcoming the shortcomings built into its early stages. Businesses and developers should keep an eye on this emerging technology for its potential to create large-scale decentralized platforms for the Web3 era.
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Kirkland, WA, USA