What is Blockchain 2.0?

Blockchain coming out of crypto shadows

In the world of software, blockchain keeps raising its head to gain some attention and make its own mark apart from cryptocurrency. I would like to emphasize the words ‘apart from cryptocurrency’. Blockchain is thought of as a platform for cryptocurrency applications with crypto being the forerunner for the application of blockchain. What happened was that cryptocurrency overshadowed the promising technology underneath, and just like any stereotype, blockchain became synonymous with crypto.

Now, blockchain is sometimes considered to be a backend for keeping immutable transactional data. However, it is still to find answers on how to build scalable solutions without a large resource and carbon footprint. This makes you think, ‘Isn’t blockchain a better fit for low transactional volume use cases?’ Interesting question. My answer would be, for high value assets not changing too many hands would mean low volume, but where immutability is uncompromisable, blockchain is the only reliable technology around for now.

What’s emerging and catching everyone’s attention is its second generation a.k.a. Blockchain 2.0, and I’m going to share my thoughts about it in this blog. Let’s get started without further ado!

Why Blockchain 2.0

So, what’s special about Blockchain 2.0? I’m sure you will agree when I say that the lack of enterprise readiness in first-generation blockchains has resulted in the disappointing abandonment of early deployments. Well, the new generation of blockchains are practical, highly cloud-friendly, high-performance, and based on software-as-a-service. Not just that, they are already tackling enterprise use cases across the world. On that note, let’s look at some use cases of Blockchain 2.0.

Applications of Blockchain 2.0

First, let’s take a look at some of the industries that blockchain is set to disrupt:

Smart contracts are the chief use case of this new avatar of blockchain – Blockchain 2.0. These are self-sufficient computer programs that run automatically in predetermined conditions. A huge benefit of smart contracts is that it itself and the business rules it enforces cannot be modified or compromised due to the blockchain. So, they empower transparent contract definition, which effectively tackles the issue of moral hazard. It also brings down the cost of verification, execution, arbitration, and fraud prevention.

Besides smart contracts, here are some more applications of Blockchain 2.0 we ought to keep in mind:

• With Blockchain 2.0, blockchain-enabled cryptocurrency applications are likely to share their importance with blockchain business applications that could boost efficiency and cut down on costs.
• Deployments will be driven by simple, standards-based schemas.
• Blockchain 2.0 can scale to tens of thousands of transactions every second and offer more scalability.
• It can store data “on-chain,” from a single Boolean value to multi-gigabyte files, whilst retaining ACID transactional support.
• It is enterprise friendly as well, adhering to regulatory and assurance programs.
• New blockchains and distributed ledgers prioritize privacy and security.

With the digital trust that blockchain provides, it is such a great technology for managing credentials that many universities are using it to confer degrees or certificates. Who knows, maybe this will lead to making the technology popular and lead to better adoption in various other fields. Imagine jubilant young students graduating from universities carrying the conferred badges on some blockchain network, with no perceived notions or inhibitions to using blockchain… These students would be the flagbearers for the wonderful tech which so far had been synonymous with crypto.

As for businesses, the core objectives of blockchain are still quite appealing. Once business differentiator solutions find their moment in the sun, it should get difficult to ignore this tech. The 2.0 moniker will then be a thing of the past and blockchain would be known for itself than being related as something to do with crypto!

Write to us at Nitor Infotech with your comments about the enigmatic Blockchain 2.0 or if you are interested in learning more about how our team strengthens business IT ecosystems with the help of blockchain technology.