Blockchain 2.0: Technology Development

We talk a lot about blockchain technology, and you probably have already been able to put together an idea of what Bitcoin, proof of work and blockchain are. But the blockchain did not stop there, but continued its evolution. Today, in our world, where new technologies are constantly emerging, blockchain is the main innovation, after the creation of the Internet, which revolutionized data exchange and communication. Technologies in general continue to develop and improve, as in the case of blockchain.

Having emerged more than twelve years ago, the technology is developing and finding new areas that require solutions. These are new opportunities for users around the world.

Definition of the basic concepts of blockchain

To begin with, it seems appropriate to define some of the basic concepts on which Blockchain 2.0 is based.

What is a smart contract?

We have all already signed a contract. For example, an employment contract or a commercial contract. You decide for yourself whether you want to accept the terms of the contract or not. This solution allows you to conduct a transaction, an exchange, for example, with one, several people or a law firm.

These smart contracts are a transcription of what we can learn from our paper contracts. These are computer protocols that will verify and simplify the conclusion of a contract. They will fulfill the contract, confirm it or cancel it, in accordance with the conditions set out in advance.

Are you impatient to find out what the term “Blockchain 2.0” means?

The mention of Blockchain 1.0 represents the creation of Bitcoin in 2008. The term Blockchain 2.0 refers to the emergence of new applications. This innovation improves the blockchain technology. We can go beyond the simple transactions that can be performed through the PTC. Always without intermediaries, and always decentralized. Technologies are evolving, and these use cases are no longer applicable only to a simple exchange.

It’s like opening a new chapter in a book. The history of blockchain continues, and the creation of smart contracts is the second chapter. It is thanks to the creation of the Ethereum cryptocurrency that the blockchain will be able to diversify these applications. In fact, Ethereum is a platform that makes it possible to create almost infinitely on the blockchain.

Let’s find out together what the Ethereum cryptocurrency is and how it works?

What is the Ethereum cryptocurrency

How will he tell us Coinmarketrate.com, a young Russian Vitalik Buterin founded a blockchain infrastructure that expands the capabilities of Bitcoin, called Ethereum. The very first block, called the Genesis block, was mined on July 30, 2015. The release of Ether (ecosystem currency, ETH) is carried out through mining (Proof of Work) just like the VTS.

Ethereum is a platform for hosting applications. This environment works in a decentralized manner and allows users to create smart contracts. They are based on a computer protocol that allows you to verify or confirm a transaction by mutual consent. All these smart contracts are searchable on the network within the block chain.

In 2018, thanks to the introduction of the so-called “Serenity” solution, a new block verification solution was integrated into the Ethereum blockchain. They will no longer be supported by the proof of work that we knew about the Bitcoin cryptocurrency, but will prepare the transition to Proof of Stake. Ethereum has developed its own validation consensus that helps reduce energy consumption.

So, what is the difference between the Bitcoin blockchain and the Ethereum blockchain?

The block verification time is 14 seconds for Ethereum, compared to 10 minutes for BTC. This makes it possible to multiply the number of transactions conducted on the network.

After confirming the operation of Bitcoin, a new generation of block checks is created for the block chain. Proof-of-stake (POS) is a type of consensus used by blockchain networks. The user will have to deposit their ETH in escrow to become a validator. Validators will be randomly selected to create blocks, as well as to validate blocks that they did not create themselves.

How has blockchain technology evolved due to Ethereum?

The history of technology began with the creation of the first blockchain in 2008 by creating Bitcoins. Specifically, this cryptocurrency is aimed at competing with the currencies of central banks. This promotes peer-to-peer exchange, that is, between two people who trust each other.

Now it is possible to send something in digital format to the other side of the world quickly and almost for free. Of course, the technology has been created, but it needs to be improved so that it meets our expectations even better. To perhaps one day achieve mass acceptance. Well, what the hell is not joking!

The Ethereum network pursues a completely different goal – to create a blockchain platform open to everyone. This allows you to create decentralized applications using smart contracts. In this scenario, the Ethereum ecosystem allows you to execute code inside smart contracts. Since they are pre-programmed, there is no possibility of disconnection, fraud or interference by third parties.

The implementation of this new use opens up the opportunity for all developers to unleash their imagination.

Here are some application examples:

• Digital identity cards

A doctor can use an application on the Ethereum platform to remember all his clients. He can store the digital identities of all his patients. Thus, all consultations, anamnesis, prescribed medications and all the information that the doctor would like to use are available.

• Intellectual property rights

Blockchain can guarantee the origin of a product, for example, intellectual property rights. The technology of registries allows you to have verifiable data (date, place, etc.). Blockchain is a great tracking tool, which, for example, makes it easy to track production batches of a company’s products.

• Blogs

This allows anyone to monetize content. That is, any traveler, for example, who publishes his adventures on the web, can receive tokens. These tokens are like gratitude from his audience, encouragement. This is a reward for information, photos, all publications. Simply put, the reward for the blogger’s work done.

• Reputation

With the help of the community effect, you can get an idea of the user’s reputation. Just like it can be done with the reputation of a hotel on a site like Booking.com . Guests leave positive or negative feedback about the property to evaluate their stay. As more and more users evaluate the location in question, the reputation of the institution becomes more reliable.

This is just a small part of a long list that we could compile for all blockchain applications (voting, logistics tracking, census, identification…). In all these cases, blockchain technology is used through the Ethereum network. You can store information (identification data, production number, patents, fines…) inside the blockchain.

Conclusion

The beginning was laid in 2008, with the birth of Bitcoin and proof of work, which edits the first block. In 2015, blockchain entered a new phase of development of smart contracts and applications. The birth of Ethereum is a new form of blockchain that comes to light thanks to Proof-of-Stake. This improves decentralization, simplifies access for users.

The Ethereum network can host applications that use its services. Many applications are developed in this new ecosystem. Many use cases have emerged, thanks to insurance, online betting, connected facilities, or many other areas that can use this new technology.

In fact, Ethereum is still in development, the first phase of version 2.0 was launched in December 2020. The final version 2.0 will be released next year.

This is a new version that improves the ecosystem as a whole and, above all, reduces operating costs. This is Blockchain 2.0