Second Generation Blockchain

Ethereum was introduced to world in 2015 as a second generation Blockchain with a built-in Turing complete programming language, allowing anyone to write smart contracts and decentralized applications where they can create their own arbitrary rules for ownership, transaction formats and state transition functions. [2]

By offering ways to write distributed application easily on top of inherently secured Ethereum, the blockchain network opened up unlimited possibilities for innovators across the world to build powerful trust-free applications. Applications with novel use cases further demonstrate, and validate, the technology’s ability to evolve beyond just a means of transferring value.

While businesses have been adopting concepts of private networks to ensure scalability, privacy and low operation costs, they have started losing some of the inherited core values provided by a public blockchain network. These private blockchain networks could be compared to “small islands located in the middle of a sea”, not allowing any transfer of economic information in a trust-less environment. This inability led to a serious hindrance in blockchain realizing its true potential and is in several ways analogous to the early part of disconnected intranet, which was then disrupted with the introduction of the Internet.

[2] V. Buterin, “Ethereum whitepaper” 2014.

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