Different Version of BlockChain

BlockChain is buzzword in today's technology. Thus, a BlockChain is defined as the digital record of transaction which is stored in the Chain of Blocks.

Each time a block is completed by storing Information, the next new block is created to store further information. BlockChain is a secure technology in which third party intermediary are not allowed. For example: in money transfer banks interference are not allowed. BlockChain technology is used in various fields like Banking, Finance, Government, Insurance, Healthcare, retail etc.

How Blockchain Works

Blockchain works like a digital ledger made up of blocks, where each block stores a group of transactions. Once a block is filled with data, it is securely linked to the previous block, forming a continuous chain—hence the name blockchain. Before any block is added, computers on the network, known as nodes, verify the transactions to ensure they are valid. This verification process relies on consensus mechanisms, such as Proof of Work (where computers solve complex puzzles) or Proof of Stake (where validators are chosen based on their staked assets). Once verified and agreed upon, the block is added to the chain permanently. This entire system ensures transparency, security, and trust without needing a central authority.

Different Versions of Blockchain

There are three versions of Blockchain as depicted below :

1. BlockChain 1.0 (Cryptocurrency)

BlockChain Version 1.0 was introduced in 2005 by Hall Finley, who implements DLT (Distributed Ledger Technology) represents its first application based on Crypto currency. This allows Financial Transaction based on BlockChain technology or DTL which is executed with the help of BitCoin. This type of Version is permissionless as any participant will perform valid transaction of Bitcoin. This type is mainly used in Currency and Payments. Blockchain 1.0 or Blockchain Version 1.0 aimed to introduce a transparent, publicly accessible, completely decentralised, immutable ledger and distributed system of transactions in the global financial market. Blockchain 1.0 is developed over the idea and structure of Bitcoin. It primarily focused on the development and creation of new cryptocurrencies. Blockchain 1.0 is often termed a digital, decentralised, distributed ledger that records transactions in a database shared by all nodes, updated by blockchain miners and maintained and monitored by everyone with no individual ownership.

2. BlockChain 2.0 ( Smart Contracts)

The new Version of BlockChain come because there is a problem in version 1.0 which was Mining of BitCoin was Wasteful and there was also lack of Scalability of Network in it. So problem is improved in Version 2.0. In this version, the BlockChain is not just limited to Cryptocurrencies but it will extend up to Smart Contracts.

Thus, Small Contracts are Small Computer's which live in the Chains of Blocks. These Small Computer's are  free computer programs that executed automatically, and check the condition defined earlier like facilitation, verification or enforcement and reduce transactions cost efficiency.

In BlockChain 2.0,  BitCoin is replaced with Ethereum. Thus, BlockChain 2.0 was successfully processing high number of Transactions on Public network rapidly.

3. BlockChain 3.0 (DApps)

After Version 2.0, new version was introduced which includes DApps which is known as Decentralized Apps. A DApp is like a conventional app, it can have frontend written in any language that makes calls to its backend, and its backend code is running on decentralized Peer-To-Peer Network. It makes use of decentralized storage and communication which can be Ethereum Swarm etc. DApps is decentralised, i.e. no single owner/authority that ensures transparency, improved security, data accessible to all, no censorship and flexible development. DApps brings many benefits such as zero downtime, ensuring privacy, data integrity and trustless yet secure communication (business, transaction, etc.).

There are many decentralized Applications like BitMessage, BitTorrent, Tor, Popcorn, etc.

Advantages :

• Transaction takes place without requiring and Third Party Intermediary which ensures the security of Details and Data.
• BlockChain use Cryptography in order to make sure the information is locked inside the BlockChain.
• BlockChain removes Double records which accelerates Transactions.

Disadvantages :

• There is always risk of Error as long as human factor is evolved.
• Transaction cost of BitCoin is quite Higher.
• Blockchain technology is immutable it means we cannot make any changes when data or information is inserted.

Key Features of Blockchain

• Decentralization - There’s no single owner or central authority. Instead, data is shared across a network of computers, making the system more reliable and harder to control or hack.
• Transparency - Everyone on the network can see the transaction history. This builds trust because no one can secretly change records.
• Immutability - Once data is added to the blockchain, it can’t be changed or deleted. This prevents tampering and keeps records accurate and permanent.
• Security - Blockchain uses strong encryption to protect data. Since each block links to the one before it, altering information becomes nearly impossible without affecting the entire chain.
• Consensus - Before a new transaction is added, most computers on the network must agree it’s valid. This process keeps the system honest and error-free.

Conclusion

In conclusion, blockchain is a powerful technology that allows secure, transparent, and tamper-proof digital transactions without relying on a middleman. By storing information in connected blocks and verifying each transaction through a network of computers, it ensures trust and accuracy. With different versions evolving from cryptocurrency to smart contracts and decentralized apps, blockchain is now used in various fields like banking, healthcare, and retail. Its core strengths—decentralization, transparency, security, and immutability—make it a promising solution for the future of digital systems.