Blockchain 1.0 vs. blockchain 2.0 vs. blockchain 3.0

Blockchain 3.0 evolves the concepts introduced by blockchain 1.0 and blockchain 2.0 even more, introducing interoperability solutions and new consensus methods.

A third-generation blockchain ecosystem solves many of the issues that plagued blockchain 1.0 and blockchain 2.0 networks, such as scalability and interoperability. Blockchain 3.0 networks typically solve the scalability issue with a new consensus algorithm: proof-of-stake (PoS).

Instead of mining, PoS asks users to stake or lock-in their tokens to become validators. Validators ensure that incoming transactions are valid before committing them to the blockchain network, earning transaction fees for their efforts.

The idea is that users who have a stake in a network would want what’s best for it and would put their best foot forward when it comes to transaction validation. Also, transaction validation is faster than mining, ensuring a network can scale as more validators join.

Then there are blockchain 3.0 interoperability solutions. Despite the vast number of blockchain ecosystems out there, many of them are siloed away from one another. Converting funds from one blockchain ecosystem to another via a cryptocurrency exchange is time-consuming and expensive, locking users out of true financial freedom.

One common blockchain 3.0 interoperability solution is that of bridges. Bridges connect two or more blockchain networks, enabling users to convert assets from one network to another. In doing so, bridges unify all types of blockchain ecosystems, genuinely capitalizing on offering financial freedom.