Blockchain 3.0

Abstract

The rapid growth of R&D in the blockchain world can be explained by the industry’s gaining a deeper understanding of where the value is created and captured for a traditional internet company and a blockchain company. Joel Monegro and Naval Ravikant talk about the idea of fat protocols, where most of the innovation in the blockchain space will happen at the core technology level. Then a token layer can monetize the use of the underlying architecture and provide access to the application layer. To that end, we have seen three iterations of blockchains in development: the first version was the original protocol by Satoshi that provides a functional blockchain for transactions. The second version was protocols like Ethereum that provide smart contracts and on-chain operations. The next generation of blockchain protocols allow on-chain execution and the integration of services such as machine learning onto a blockchain for advanced tasks.