Block Chain Versions
Blockchain technology has gained popularity because it offers decentralized and transparent storage to record transactions and data.
Blockchain Version 1.0: Cryptocurrency:
Blockchain 1.0 is the first cryptocurrency, which records the bitcoin transactions on the public ledger in a secure method. The implementation of Distributed ledger technology was the reason behind its first version.
It is a permission-less blockchain where any participant can perform a valid transaction of bitcoins.
It works as a simple state machine, which can be used as a platform for the bitcoin transaction. State machine manages the transition between valid states similarly Blockchain records and manages the bitcoin transactions between valid participants of the network.
Blockchain Version 2.0: Smart Contract:
The new concepts in the blockchain are Smart Contracts, it is a small self-executing computer :programs that exist in the blockchain. In Blockchain 2.0, Bitcoin is replaced by ethereum.
The smart contract is one of the most successful blockchain applications, it helps in reducing transactions cost-effectively. Ethereum network is the best platform for creating and executing smart contracts. This is used as a replacement for the traditional contracts.
Blockchain Version 3.0: Dapps:
The Dapp is a short form for Decentralized application. Decentralized applications run opposite to centralized applications running on a single computer.
A Dapp is like a conventional app, it can have frontend (written in any language) that can make calls to its backend. A Dapp can host its frontend on decentralized storages, including Ethereums Swarm.
Decentralized apps do not need to run on top of a network of blockchains. There are many decentralized applications running on a P2P network, like BitMessage, BitTorrent, Tor, Popcorn, etc.