May 6, 2019 19:30 UTC
May 6, 2019 at 20:32 UTC
Blockchain 1.0 and 2.0: How Were They Different?
As we have discussed on this platform before, there are three generations of blockchain technology and a fourth generation is currently being developed. Considering the fact that the first and second generations of the blockchain technology continue to be relevant to this day, we thought it would be worthwhile to have a look at their basic characteristics and analyse the differences between them.
You May Also Read: Blockchain 3.0: An Overview
Before embarking on a discussion about their similarities and differences, it is important to first understand what they are all about, so that we can effectively compare the two generations of blockchain technology.
Blockchain 1.0: What was it all about?
Blockchain technology was introduced to us by the anonymous founder of Bitcoin, Satoshi Nakamoto. Back then, it represented the application of distributed ledger technology (DLT) to its most obvious use case, which was the use of digital assets or cryptocurrencies for value transfers and transactions.
Bitcoin was the most common example of this and for good reason. This was developed as a decentralized, peer-to-peer digital cash system built on the blockchain and the first generation of blockchain involved working only on such forms of digital cash. Blockchain 1.0 was basically a way to confirm transactions on a decentralized ledger system.
Blockchain 2.0: An Overview
With the coming of the Ethereum network, spearheaded by the young Vitalik Buterin, the world of blockchain was introduced to the second part of the revolution that was blockchain.
Blockchain smart contracts were introduced for the first time, introducing autonomous codes that could exist within the blockchain and execute tasks by itself, based on preset conditions.
With this, the widespread enterprise application of blockchain became a viable concept. The practice of using blockchain for various use cases, such as insurance disbursements and escrow services.
Comparing the First and Second Generations of Blockchain
These two generations of blockchain, Blockchain 1.0 and Blockchain 2.0 are very different in terms of their scope of application.
Although scalability issues persisted from the first to the second generation of blockchain, its use cases increased manifold because it went from being just a mode of digital transactions to a revolutionary technology, where the business benefits of blockchain could have a serious impact on various industries.
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