The journey to Blockchain 3.0

Ethereum was created by introducing a turing complete language to build decentralized applications and thereby solve issues of bitcoin like value blindedness and lack of state. It made building dApps easier and one of the reasons for blockchain getting popular among masses but it couldn’t completely fulfill the needs of few rapidly developing projects .As we can observe that most of the successful blockchain projects work on their custom chains.
The following can be underlined as the main reasons for projects to look for an alternative of ethereum.

1. Scalability:Ethereum tried to provide scalability better than bitcoin but couldn’t meet the trends because of it’s two main limitations,Gas price and Transaction(Tx) speed.Ethereum was highly criticised when cryptokitties got very popular and almost crashed the system.The need for further scalabality was highlighted when the tx time went up to a couple of hours for each tx just because of a spam attack last month.
2. Tx Speed:One of the biggest limitations of ethereum which makes it difficult for mass adoption is tx speed.The most used peer to peer tx system,visa has a speed of 24000tx/s whereas ethereum has an average of 20 tx/s which is a huge difference.The situation worsens in case of any network congestion which increases gas price.
3. Gas price:The gas price which was introduced as mechanism to reward miners had it’s effects on users, mainly during network congestions which increases gas price drastically impacting cost per transaction.The gas price acts as a limitation to various projects which are trying to provide services at a price lower than non blockchain projects.
4. True Decentralisation:In ethereum network,decentralisation is achieved only in case of making transactions with another actor on network and rest of application logic is centralised.
5. Multiple State Channels:Ethereum introduced the concept of state channel which made smart contracts possible but having a single state channel for all becomes a limitation.
6. Proof of Work:Both bitcoin and ethereum were long crtiticised for proof of work.Ethereum is working on implementation of Proof of Stake since long but no clear timeline has been released yet.
7. Integrating with current codebase:It is not possible for ethereum to integrate with already existing codebase of other projects like bitcoin or others.Having this feature would make it useful for community for various transfers.

To overcome these drawbacks, the community needed an advanced version of blockchain which was named as Blockchain 3.0 as ethereum was considered as blockchain 2.0.Cosmos is one such solution which tries to solve above issues in the following way.

1. Horizontal and vertical scaling:Cosmos provides both horizontal and vertical scalability by introducing the concept of zones and hubs.For implementation of vertical scalability we can host new zones for new services whereas horizontal scalability is achieved by sharding previous block data.
2. Higher Tx Speed:Cosmos uses tendermint based blockchain and is one of the few projects which can do block commit to finality in the order of 1 second. It can handle 250 byte transactions at a rate of 10,000 tx per second.
3. Gas Price:As projects can have their own hubs in cosmos,gas price will be collected in their respective tokens.This helps users, as it is easier to make transactions and also adds value to the token.
4. Multiple state channels:Cosmos has multiple zones for a single hub which act as multiple state channels.This helps in implementing various services which can be operated with a single token.
5. Decentralising app logic:As we have multiple state channels,we can use zones to decentralise application logic which helps in perfect decentralisation.
6. Proof of Stake:Cosmos uses Proof of Stake which solves both the problems of computational power and energy consumption.
7. Integrating with existing codebase:Cosmos has peg zones which act as link between existing codebase like ethereum and cosmos hub.This makes the transition from current codebase to cosmos easier.They also have algorithms in place to prevent inflation during this transition.

This is how blockchain which was introduced with bitcoin upgraded to blockchain 2.0 by the advent of ethereum is trying to further transform with blockchain 3.0 to achieve complete decentralisation.