Blockchain Technology Explained

Blockchain expert and researcher Sab Saing explains the importance of the constantly-evolving technology that is revolutionising global operations
Sab Saing, blockchain expert and researcher
Sab Saing, blockchain expert and researcher

Sab Saing, Head Of Blockchain at IG Tech Group, is a decentralization enthusiast who harbors a passion for blockchain, FinTech, and cyber security, and has conducted four years of research on blockchain.

Blockchain is a distributed ledger technology, and all operations are accessible. Decentralization is the community that installs it on computers and contributes databases for maintaining a secure network and decentralized records of transactions.

Blockchain's purpose is to enable digital information to be recorded and distributed, but not altered. A blockchain is a foundation for immutable ledgers, or records of transactions that cannot be changed, erased, or destroyed.

A blockchain allows the data in that database to be distributed across multiple network nodes in different places. This not only adds redundancy but also ensures the accuracy of the data stored.

“The more volunteers that use it, the safer it is. There is no intervention, even if someone is disconnected, there are other computers running, and the user continues to use it until we cannot stop it because it can run, so it is called Decentralization,” Saing said.

He said blockchain is a generation in which the developer discovers the faults or limitations of the blockchain project. If the developers want to add or remove the project, they can break apart the community or build a new project.

The blockchain concept was first launched during a research project in 1991. Since then, the use of blockchains has grown exponentially that the development of multiple cryptocurrencies, decentralized finance (DeFi), tokens, NFTs, and smart contracts.

Bitcoin is a peer-to-peer electronic cash system that allows internet payments to be transmitted directly from one party to another without going through a banking institute.

“To begin, cryptocurrency is Bitcoin, which was built on blockchain technology and promises to be a peer-to-peer cash system, requiring users to use digital wallets to send money without relying on centralized government support,” Saing said.

Blockchain 1.0 is the initial iteration of blockchain technology, focusing on decentralization and cryptocurrency. The blockchain's first emergence began with the creation and development of the first cryptocurrency, Bitcoin (BTC).

Blockchain 2.0 is apparently an upgraded version of Blockchain 1.0, which is represented by Ethereum (ETH). Blockchain 2.0 is focused on the rise of Ethereum and the integration of smart contracts.

Blockchain innovation is to expand projects rather than deliver money networks. Every day new projects emerge.

“However, it is evident that blockchain is about more than just sending money to each other, therefore new applications are continuously being developed. That is why Ethereum was designed to allow developers to write code to execute in a blockchain, and the process is known as a smart contract,” Saing said.

He added that a smart contract is a coding program written on business logic or any condition on blockchain that runs on its own and is managed by no one in Ethereum, the second generation of the blockchain world.

Blockchain evolution aims to enhance scalability while allowing blockchains to communicate with one another. Blockchain 3.0 will enhance the technology's capabilities while utilizing decentralized applications. It focuses on resolving existing blockchain technology issues​ and inseparable. It also aspires to make transactions faster, more cost-effective, and more efficient.

“Now is the third generation of the blockchain world, and some developers are already announcing themselves by type of business, and teams. However, developers should not be isolated, it must be together to cross transactions,” Saing said.

He confirmed that there seems to be a lot of threats from hackers to run these systems. However, the third condition of blockchain refers to the Blockchain network created to allow different blockchains to be connected or transferred from one chain to another.

“The third generation develops blockchain brides that may be connected from one network to another but are still insecure, moreover, there is still no dominating player, only someone who proclaims himself, and it will be evident what is the best option in approximately three to four years,” Saing said.