Although second-generation platforms like Ethereum allow applications to run as programmed, third-generation platforms have emerged to address existing problems in these second-generation networks, reported Business Korea on September 27, 2018.
Orbs, EOS, and Link Chain are a few examples of popular third-generation blockchain networks which are solving Ethereum’s shortcomings like its commission fees and slow data processing times and gaining much popularity in South Korea.
Third-Generation Blockchains to Address Shortcomings of Ethereum
According to Investopedia, the third-generation blockchain network emerged from the problems in the first two generations. The first-generation was a shared public ledger that supported digital currencies like Bitcoin, while the second-generation evolved to include trust agreements and assets, resulting in the creation of smart contracts, as seen in the Ethereum network.
While Ethereum is a significant improvement from the initial first-generation network, the blockchain suffers from many existing problems that prevent the masses from adopting the technology.
The goal of the third-generation blockchain network is to solve these issues. For example, the Israeli-based blockchain platform Orbs, which is soaring in popularity in South Korea, aims to address the scalability and speed problem present in Ethereum, by using separate chains.
Business Korea noted that while many companies are looking to overtake Ethereum, Orbs is keen to succeed and advance the Ethereum network. The Israeli companies will also work with Terra, a blockchain payment projects, and has already partnered with Ground X, a blockchain subsidiary from the Kakao Corporation.
Another example of a third generation network is EOS, a blockchain-based decentralized system in competition with Ethereum. EOS plans to combat the slow processing speed by introducing an alternative consensus algorithm and governance process known as delegated-proof-of-stake (DPoS). Here 21 community voted block producers provide the necessary computational power and bandwidth and storage for the EOS blockchain network.
Naver and Kakao to Unveil their Blockchain Platforms
South Korea’s two largest internet companies Naver and Kakao are also in the process of launching their blockchain platform to the public. Naver is currently exploring blockchain technology through its Japanese subsidiary Line.
Line, the messaging app, also launched their blockchain platform known as Link Chain and the Link token. Line’s goal is to use these tokens as user reward-based content in commerce and gaming. These features will be released in the future.