Blockchain 2.0 is the second generation of blockchain technology, including smart contracts, decentralized applications (Dapps), and other advanced functionalities.
For example, instead of relying on third parties to process transactions, a smart contract can automate peer-to-peer transactions with no additional outside help.
Blockchain 2.0 platforms can also call other contracts, use their code, and connect to the internet. They make decisions based on what they find there. This makes them more versatile and useful than first-generation blockchains, which are limited in functionality.
Today’s most prominent example of a blockchain 2.0 platform is Ethereum, developed by Vitalik Buterin. The Ethereum blockchain database is maintained and updated by many nodes connected to the network.
Ethereum’s defining feature allows developers to create “smart contracts” on the blockchain. These contracts are run using ether (ETH), the native currency of the network. Ether is like bitcoin in that it’s used to transfer value between accounts on the network – but it has many other features.
With this decentralized approach, Ethereum makes its data tamper-proof through distributed consensus. So, once committed to the database and confirmed by the network, information can never be erased – it becomes part of an immutable record of events.