The first generation of blockchain technology focuses on creating a decentralized, immutable ledger for recording transactions. With the introduction of Ethereum in 2015, a new wave of blockchain emerged, blockchain 2.0 smart contracts. It solves the problem of the first generation of blockchain by executing smart contracts and decentralized applications (dApps).
Limitations of Blockchain 1.0
No capability of supporting more complex use cases such as smart contracts. Limited transaction processing capability makes it unsuitable for handling larger-scale transactions Average transaction fees on Bitcoin reached 60 USD, which can burden on an individual’s pocket.
Blockchain 2.0 - The Solution
Introduced smart contracts for automating the business process. New network architecture and consensus mechanisms help process a high number of transactions The use of a more efficient consensus mechanism and the development of layer 2 scaling solutions reduces the transaction fees.
Blockchain 2.0 smart contract introduces new features and functions that resolve the limitations of the first generation of Blockchain with smart contracts. Hire an expert to gain insight into blockchain 2.0.