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Blockchain Version

The brief description of the evolution of blockchain technology and its "versioning" from 1.0 to 3.0 can be shown below.

Blockchain Version

Blockchain 1.0: Currency

The idea of creating money through solving computational puzzles was first introduced in 2005 by Hal Finney who created the first concept for cryptocurrencies (The implementation of distributed ledger technology). This ledger allows financial transactions based on blockchain technology or DLT to be executed with Bitcoin. Bitcoin is the most prominent example in this segment. It is being used as "cash for the Internet" and can be seen as the enabler of an "Internet of Money."

Blockchain 2.0: Smart Contracts

The main issues that came with Bitcoin are wasteful mining and lack of network scalability. To overcome these issues, this version extends the concept of Bitcoin beyond currency. The new key concepts are Smart Contracts. It is small computer programs that "live" in the blockchain. They are free computer programs that executed automatically and checked conditions defined earlier like facilitation, verification or enforcement. One big advantage this technology offers is the blockchain making it impossible to tamper or hack Smart Contracts. A most prominent example is the Ethereum Blockchain which provides a platform where the developer community can build distributed applications for the Blockchain network.

Quickly, this version is successfully processing a high number of daily transactions on a public network, millions were raised through Initial Coin Offerings (ICO), and the market cap increased rapidly.

Blockchain 3.0: DApps

DApps is also abbreviated as a decentralized application. It uses decentralized storage and communication. Its backend code is running on a decentralized peer-to-peer network. A DApp can have frontend code hosted on decentralized storages such as Ethereums Swarm and user interfaces written in any language that can make a call to its backend, like a traditional Apps.

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