A 5th Generation Blockchain Network
We've come a long way since the origin of Bitcoin, Umbrella is here to take us further.
The Evolution of Blockchains
Gen 1: Bitcoin - Decentralized Store of Value
Gen 2: Ethereum, EOS, NEM - Decentralized Application Systems
Gen 3: Cosmos, Polkadot - Composable Decentralized Application Systems
Gen 4: Solana, BSC, Polygon, Sui - Scalable Decentralized Application Systems
Gen 5: Umbrella - Useable Decentralized Application Systems
Generation 1 - Bitcoin: Decentralized Store of Value
The blockchain industry as we know it has come a long way since the original inception of Bitcoin’s decentralized ledger in 2009. Bitcoin showed the world the ability of a decentralized currency to be able to function as a store of value assets tied to the work and energy consumption tied to the Proof of Work algorithm. Bitcoin was and still is, the truest application of a decentralized network and is the cornerstone from which the decentralized economy is built. Bitcoin creating near indestructible digital value is what made everything that has come after it possible.
Generation 2 - Ethereum: Decentralized Application Systems
A few years later, in 2014, a similar algorithm was developed to create what we know as Ethereum; a decentralized protocol that introduced the world to smart contracts and built upon Bitcoin’s use case by enabling applications to develop on top of their network. Ethereum was the first “application chain” to gain traction, opening the floodgates for the rise of blockchain as a technology beyond Bitcoin and payments. It didn’t take long before many competitors altering Ethereum's approach began to appear. During this time the “blockchain trilemma” was officially dubbed. An issue all blockchains are plagued with is whether to maximize Scalability, Security, and Decentralization. It became apparent that focusing on either would diminish the effectiveness of a network to address the other two.
Generation 2.1 - Zcash: Private Decentralized Systems
One of the first popular waves of application chains to hit the market was privacy-focused, intending to solve the “Security” problem from the trilemma. As Ethereum and Bitcoin gained popularity the fear of an open and public network being taken advantage of by centralized parties led to the introduction of “privacy chains”. Zcash and Monero forked existing technologies and added their own privacy layers to create environments free of wandering gazes.
Generation 2.2 - Composability Adds Another Dimension to the Trilemma
The introduction of new Ethereum competitors focused on scalability, like EOS, Bitcoin alternatives such as Litecoin, and the rise of privacy chains, left the ecosystem seeming fragmented and separated. Innovation was occurring in silos that couldn’t be replicated in other environments. The problem was dubbed “composability” and quietly became the 4th part of what was previously considered to only be a 3 parted blockchain trilemma.
Generation 3 - Cosmos/Polkadot: Composable Decentralized Application Systems
This was when Interblockchain Communication (IBC) focused chains were created. Cosmos and Polkadot came onto the scene as the cool new kids on the block. Touting new network designs and scalability solutions that would change the way dApps were built by enabling different blockchains to speak to one another for the first time ever.
Gen 4: Solana, BSC, Polygon - Scalable Decentralized Application Systems
Most recently we’ve seen new blockchains lose their purpose. The trend is to try and fix issues experienced on Ethereum by:
Reducing decentralization to increase speed/lower costs
Replacing solidity with an alternative language
Allowing some degree of cross-chain communication
Implementing industry-standard security from launch
This is where Layer 2's and more centralized chains began to prosper by eating off of Ethereum's massive scalability issues.
Generation 5: Umbrella - Useable Decentralized Application Systems
If you’ve kept up so far, you may realize that all of these features that have been developed for years in the space follow trends. Yet most networks are still attempting to reinvent the wheel, focused on the same issues that the smartest minds in the industry have been focused on. Leveraging brands and raising money to solve problems the founders themselves often don't feel.
Umbrella is pushing the industry forward by not only defining the past but by building the future. While everyone has forgotten about the end-user and is focused on nuanced (often wasted) development efforts, Umbrella combines the best of what exists in the market to create an unrivaled experience for developers and users. Umbrella's founders have all been deep web3 users while working professionally in the space for a combined couple of decades. We're confident that we are the team that is going to define what the next frontier of web3 looks like.
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