Sunday, 23 May 2021

Stacks and WEB 3.0 (The Simple Version or for those who didn't get it the first time)

To really explain what and how powerful Stacks is, I will use an analogy involving the top two popular cryptocurrencies: Bitcoin and Ethereum. You've probably heard that Bitcoin is like digital gold and Ethereum is like digital oil. Gold is the most secure store-of-value and oil has a wide range of uses - fuels, energy, cooking, lubricants, ointments, healing, bodily functions, economics, politics etc.


The Bitcoin blockchain was designed structurally to do one thing and to do it well: be the most secure form of digital store-of-value. Ethereum was designed structurally to enable individuals build a wide range of services and applications on its blockchain. The problem is you can't do both efficiently in one, by design (how many times did I just use the word design?)


Both are doing their jobs well - Bitcoin's price has been skyrocketing and Ethereum and other Crypto-Chains like it have spawned a vast world of applications and services we never thought possible. But Ethereum can get very slow and has extremely high processing fees as a result of have all these apps living in its ecosystem. Stacks was invented to tackle these issues and represent the best of both worlds.


Even though Stacks is technically a separate blockchain, created to perform a different set of operations, it links into the bitcoin blockchain to verify and secure the transactions of all the activities it carries out. Without getting too technical it is a Layer-1 Blockchain(same as Bitcoin) and NOT a secondary Network. Its core philosophy is to manifest a truly decentralized web which gives the power and control back to the end users as opposed to Big Tech Companies like Google and Facebook which have a centralized monopoly of the internet. A main feature in this drive is implementing true and absolute privacy like that of Monero (another decentralized crypto-chain) while swiftly and efficiently handling the enormous traffic of a network like Ethereum. All users' data is stored in an encrypted and decentralized form called GAIA and users choose when and how Apps access that data. According to Stacks, more than 14,000 developers are now working on the open source platform.


All of these efforts by Stacks and other Crypto-ecosystems have ushered in what is commonly known as WEB 3.0. Let's look at real-world business models and fields of application that are enabled by this new crypto-enabled paradigm:


Finance

A key branch of this WEB 3.0 is inevitably decentralized finance (Defi) which includes the usual suspects like loans, investments, trading, insurance and much more.

Energy

A huge problem with Bitcoin is its energy consumption: this is currently more than 29 terawatt hours per year, around 0.13 percent of global consumption. The crypto currency Chia promises to be significantly more energy-efficient: It is not based on computing power, but on storage capacity.


Cryptocurrencies such as EnergyCoin , SolarCoin and GENERcoin combine the generation of digital tokens with the generation of renewable energies. Instead of reducing the use of electricity, they create an incentive to participate in the production of green electricity and thus contribute to the creation of a decentralized energy system. And LO3energy brings local producers of green electricity directly together with consumers - quickly, securely and transparently.

In addition, the peer-to-peer principle also promises greater resilience than the conventional power grid. The first experiments with microgrids - small, independent networks made up of decentralized power sources and consumers as well as an intelligent control system - are already taking place, including in New York and the Allgäu.


Philanthropy

The blockchain anonymizes its users and at the same time enables a high degree of transparency. This combination can provide positive impulses, especially in branches of industry in which there are dubious ecological and social conditions. Everledger is trying to reduce the trade in blood diamonds from crisis areas - via a database that is accessible to all based on the blockchain, which reveals the individual path of a diamond, from the mine to the store. For this purpose, data from insurance companies, police departments and certification houses are combined.


The system could also be extended to other areas such as everyday consumer goods. Provenance helps manufacturers, retailers and consumers to control the origin of fish or coconuts using the blockchain. This not only benefits the transparency of production processes, but also compliance with environmental and social standards.


The networkers

Steemit shows how the blockchain can lead to more fairness and equality on the Internet. The startup is developing a decentralized social media and blogging platform: a blockchain Facebook that is said to be resistant to all forms of censorship - and which rewards users with coins for the data they feed in.


Politics and Voting

The blockchain also enables the transfer of documents or the casting of a vote without the involvement of banks, notaries or state institutions. In this way, fraud and corruption, but also the costs and effort of paper-intensive bureaucracy, can be radically reduced. The advantages of integrating the blockchain into the electoral system are currently being hotly debated: no electoral fraud, maximum flexibility of voters and individual verifiability of the evaluation could strengthen citizens' trust in democracy. Just imagine if we had this in place for the 2020 elections?!


Web 3.0 is not only here to stay but will change our way of life as we know it, on a global scale. The question is not if we will get involved but how and to what degree we will use this revolution to help better the life of the person standing right next to us.

Follow this link for more news and developments of Stacks: 

https://paper.dropbox.com/published/stacksblue-Stacks-Brief-JOEqkfUQsrhINkQyCyBc5cK

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