In Part 1 of this article, we talked about how blockchains work. But when, where, and how should it be used?
The first types of blockchain solutions ー what could be called ‘generation 1.0’ ー include cryptocurrencies like Bitcoin, Dash, and Zcash. They were (and still are) excellent for performing financial transactions, but that’s where they’re limited. What could be called ‘generation 2.0’ of blockchain tech ー Ethereum, Hyperledger, and Corda ーnot only encourage financial transfers, but allows users to create what are called Smart Contracts .
Think of blockchain 1.0 as a famous actor. It did some movies, it’s well-known, but all it can do is act. Relatively, generation 2.0 is the next best thing. Sure it can act too, but you should really hear it sing! Smart Contracts are where blockchain is really finding its voice.
The world had its first taste of blockchain tech in 2009, when it was introduced as the backbone of Bitcoin by the elusive Satoshi Nakamoto. They created the blockchain as a way to prevent double-spending in a digital currency system, and to allow users to take control of their own money.
Since then, it’s come a long way.