Abstract: From the birth of Internet in the 1960s, it took more than 30 years to be commercialized. The Blockchain technology has developed from the start of Bitcoin in 2009, but Blockchain technical‑performance still need improvement and be standardized in order to be commercialized. Just as the Dot‑Com Bubble of the early 2000s, many IT companies attempted to fuse with many transitional Blockchain technology to create Blockchain businesses. Likewise, Internet businesses cannot grow without the Internet technology, and Blockchain‑based business market will be difficult to establish until the development of Blockchain technology.
GBT Protocol is committed to becoming the standard protocol with the priority of developing public Blockchain. GBT Protocol will build a truly decentralized network optimized for P2P communication for commercializing simultaneous transaction processing and distributed storage technology through Genesis Hoisting and Defrag Function technology.
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The 1960s history of Internet began with the structure of packet-switching network. The first paper on the current computer-mediated communication method of packet-switching theory was published in 1961 by Leonard Kleinrock from MIT. In 1969, a protocol for internetworking was developed where several distanced networks could join together on a single network.
With the appearance of PCs and 1200bps modems in the mid 1970s, a decentralized model of CMC (computer-mediated communication) network emerged. Meanwhile, the development of Ethernet made a big contribution to the expansion of Internet users. This is a kind of Local Area Network (LAN) expansion, and it is the most standardized model of the current Internet network. Until the 1970s, the scale of the network began to expand dramatically from the development of standard systems and applications.
However, since the 1980s, the management and employment of the Internet became a big problem. Accordingly, systems that respond to environmental changes were developed, e.g. DNS (domain name system). Initially, only a single host table was sufficient because of the small number of hosts, but as the number of hosts increased, it became difficult to remember the host’s name and address, and the DNS (Domain Name System) was developed and introduced in 1984 when the number of hosts exceeded 1000. In 1983, the Internet Protocol Suite (TCP / IP) was standardized with two functions: IP for carrying packet, and TCP for controlling the flow and adjusting lost packets.
It has been since the 1990s that commercialization has progressed and expanded in full-scale to the public. The number of hosts exceeded 10 million in 1989 but reached over 30 million in just one year. At this time, the first Internet search engine, Archie, was developed, and for the first time a commercial Internet service provider (ISP) emerged. The decisive moment for the commercialization of the Internet was established when the World Wide Web was developed and distributed since 1991, and the reason for the development of the Web was to provide convenience to users for development of browsers.
Since the mid 1990 ’s, the Internet has had a great impact on culture and commerce with the increase of users’ easy accessibility of the Web, the spread of low-cost and high-performance PCs, and the expansion and development of communication infrastructure. This emerged the World Wide Web of blogs, social media, online shopping malls but as well as E-mail, instant messaging and video calls.
Blockchain is a distributed data-storage technology that verify records of transactions that are transparently recorded on the ledger and replicate and store it into multiple nodes so that anyone can access, in order to prevent from hacking.
The problem with the centralized financial system was revealed from the Global Financial Crisis in 2007. In 2009, Nakamoto Satoshi proposed the Blockchain technology to deviate from centralized financial capital power of dollar as a mean of fulfilling personal financial transactions in an unreliable P2P environment.
Blockchain, also called the public transaction ledger, is a distributed data-storage technology that connect blocks into a chain format, and replicate and store into many computers at the same time. Instead of keeping a record of transactions on a centralized server, all users participating in the transaction are able to hold the same transaction record, and every participant share the same transaction record whenever a transaction is made to prevent data tampering or alteration.
This Blockchain technology is applied to Bitcoin, and transparently record transaction details on the ledger that anyone can get access, and verify the record every 10 minutes to prevent from hacking. Bitcoin is processed completely anonymously, and anyone with a computer or has access to the Internet can own an address.
With the development of Ethereum by Vitaly Buterin in 2014, the Blockchain underwent a major change. Vitaly Buterin, who forked the Bitcoin and built Ethereum, implemented the Smart Contract, which record contract terms in Blockchain and automatically trigger contracts when conditions are met. The use of Blockchain technology has been enhanced by Smart Contract that can be applied to the overall industry as well as financial transactions.
Assuming that a new paradigm has been created by development of a particular technology, what elements are needed for the paradigm shift? The power to interchange from old to new is trust. The current Internet is centralized. In addition, forging the Internet is easier than counterfeiting in the real world. But most of use desire fair trade and trust the possibilities of the Internet. Such trust and reliability should not be broken down by some malicious people, and must be established with a more reliable Internet society even with some loss.
Due to the Blockchain technology, the centralized Internet is shifting to a decentralized structure. Typically. cryptocurrency is being applied, and uses the method of storing financial transaction details in a block, sending transactions records to all users participating in the transaction, and using countermeasures against data counterfeiting. In addition to electronic payment and digital authentication, it can be applied to various fields requiring reliability and trust such as cargo tracking system, P2P loan, electronic voting, vehicle sharing, and medical record management. Currently, it is accelerating through the Ethereum platform, but the limitation of increase in platform-usage cost, transaction processing speed and storage space still needs to be solved.
However, the decentralized platform now reverts to a centralized structure in terms of governance, distribution of tokens, project operation and management, and also DApps operate in a centralized server as hybrid structure. The development of Distributed Ledger Technology (DLT), in which each node in a distributed network shares and keeps synchronizing database without the control of a central server or a central manager, will lead to the realization of a truly decentralized network consisting of nodes out of the server-client structure.
Nine years have passed since Bitcoin was developed since 2009. How will Distributed Ledger technology evolve in the future? When will it be widely commercialized? This can be predicted by the development and commercialization of Internet technology. By 2020, various Distributed Ledger technology will be developed and DLT will be standardized after 2020, and DLT will be commercialized and used throughout the industry in 2025
ARPHANET that started as Internet in 1969 was standardized around the world at 1983 after 14 years of development in Internet technology with a protocol called TCP/IP. From which 8 years later in 1991, the World Wide Web (WWW) was developed, distributed and commercialized. Since then, the “dot-com bubble” has occurred between 1995 and 2000, and many have started to plunge into the Internet business. However, many IT companies have tried to converge too much into transitioning Internet technology, and many venture companies have gone bankrupt since then.
Currently, the Blockchain industry has experienced a bubble economy like “dot-com bubble”, with technological development and attempting to commercialize it. Without trust and reliability in the Blockchain technology, it is difficult for people to accept the new paradigm, which is also linked to the structure of a market (commercialization). Like the development of the Internet industry in the early days, the Distributed Ledger Technology will go in a similar direction. However, it can be predicted that the Distributed Ledger Technology will progress several times faster because it uses the existing Internet infrastructure. As Internet businesses cannot exist without the Internet technology, businesses that use Distributed Ledger technology can expand only after the development of Distributed Ledger technology in real life. The challenges faced by the commercializing the Distributed Leger technology are as follows.
First, the transaction processing speed need to be faster (Scaling Issue). The current speed limit can be seen from Bitcoin (7 TPS) and Ethereum (20 TPS). Like the ‘Crypto Kitty incident’, Ethereum has experienced several paralyses of the network due to low throughput speed when traffic is flooded. In order to be used as real life source of Web, it should be accompanied by a more fundamental structural change than additional development of technology such as SegWit, Lightening, Raiden, and Sharding.
Second, the cost of use (gas fee) should be improved. Ethereum is being implemented on the Blockchain, both in the recording of the Distributed Ledger and in the Smart Contract execution. Each time a request is made, you will be asked for gas. Just as, not paying every time for using the Internet, we need to improve our current payment structure in order to commercialize.
The third is data storage efficiency. Constantly generated ledger, Smart Contracts, and junk data are stored forever in the Blockchain, and all full Nodes must store all of the data accumulated from the Genesis Block which is over 1 Terabyte of current Ethereum. As the capacity of the Light Node exceeds 150 GB, the entry barriers increase and the overall network efficiency decreases. It is necessary to store them efficiently. Data integrity is guaranteed, but a more efficient data storage structure is required.
The fourth is to create a fully Distributed DApp structure. Currently, the DApp structure is formed into a hybrid application of App and DApp (decentralized application). DApp’s database is stored in a Blockchain structure, and the executable codes run on the central server which the data can be protected through the Blockchain, but if the central server is disabled, the whole system will crash. Not only the database, but DApp’s source files need to be processed in distributed structure.
The fifth is to create a universal Blockchain development environment. It is difficult for Ethereum to introduce more DApp because of the increased barriers to enter from less-dissolvable language (Solidity) in a limited environment. If you provide a development environment in a more common language, many developers will easily participate and develop a lot of killing App.
Finally, it is multiple integrity verification. The current Blockchain network structure has become somewhat centralized. Projects adopting Proof-of-Work are controlled by the foundation and mining pool operators. The Proof-of-Stake has a capital-based encroachment structure and the Delegated-Proof-of-Stake is not governed properly and is eventually controlled by a handful. In other words, integrity verification and consensus must take place by the majority, so that the Blockchain with the true meaning becomes valid and centralized, and become degraded to the structure that takes over the system. To maintain a true decentralized system, multiple Nodes must evolve into a structure that can participate more to the system.