Blockchain technology has only been around for a while. But it is one of the accurate examples of technologies that rapidly evolve to adapt to the users’ needs. Today, as we witness the new and improved internet through web3, the blockchain is shooting up for the future. One important player who is infant setting new standards for other blockchains is Hedera Hashgraph – The Third Generation Public Ledger technology that offers high throughput, low latency, and secure & fair consensus for various use cases.
In this blog, let´s look at the specifics of the three generations of blockchains and how Hedera is growing beyond the mark with its third-generation public ledger.
- First Generation Public Ledger
- Second Generation Public Ledger
- Third Generation Public Ledger
- Hedera’s Impressive Third-Generation DLT
- Is Hedera the Future of Public Ledgers?
First Generation Public Ledger
The first-generation blockchain was specifically created for Bitcoin, which aimed at a drastically different monetary system from the existing centralized systems. Bitcoin was the curtain raiser to the decentralized systems we see today. But, as a first-generation blockchain, it only focused on enabling individuals to conduct peer-to-peer transactions, eliminating the need for centralized entities, like banks, as intermediaries. Ultimately, it gave individuals greater control and autonomy in their financial dealings.
Second Generation Public Ledger
Bitcoin’s blockchain design only allowed sending, receiving, and trading. The convenience and novelty of this system got people wanting more like a public network for which they can come up with their own terms and conditions. This was when the Ethereum blockchain entered with its revolutionary second-generation blockchain.
Ethereum brought two new things to the spotlight.
- The concept of smart contracts that are customizable and self-executing.
- The ease of creating a new cryptocurrency based on the Ethereum blockchain.
Smart contracts are self-executing digital agreements, with the terms of the agreement between two parties being directly written into lines of code. When the conditions specified in the contract are met, the contract automatically triggers, allowing for the terms of the agreement to be carried out without the need for intermediaries. This innovative concept streamlines and simplifies various transaction processes.
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On the Ethereum blockchain, the developers could write up new cryptocurrencies and crypto-based projects on Ethereum to launch blockchain applications.
Ethereum works more like a digital ecosystem rather than a cryptocurrency. Some functional uses we can get out of Ethereum include Decentralized Finance (DeFi), gaming, web browsing, identity management, supply chain management, and more.
Third Generation Public Ledger
The first and second generations of blockchain technology have been groundbreaking and innovative, but they have also struggled with scaling issues. As more people try to use the blockchain for transactions, the system can become overloaded, leading to delays and high fees. This can be a barrier to adoption, especially in developing countries. Third-generation public ledger blockchain projects address this problem by automatically increasing capacity when needed, so there are no bottlenecks or long wait times for transactions.
Another issue that third-generation blockchain projects address is interoperability. In the past, different blockchains could not communicate or share information, which can be a hindrance to collaboration. However, projects like Hedera Hashgraph, Cardano, and Polkadot were designed with scalability and interoperability in mind, allowing them to work seamlessly with other blockchains. This is important for the industry to thrive, as it allows for sharing information and data across platforms.
Related Resource: How we helped businesses with our Hedera hashgraph development services
Hedera’s Impressive Third-Generation DLT
The Distributed Ledger Technology of Hedera has a high transaction speed of over 10,000 transactions per second, making it well-suited for real-time applications. In comparison, both Bitcoin and Ethereum have much lower transaction speeds at around 3 and 12 transactions per second, respectively. Hedera also has a low average fee of $0.0001, compared to the $22.57 and $19.55 average fees for Bitcoin and Ethereum over three months. Hedera uses a decentralized public network based on efficient hashgraph technology, making it fast, secure, fair, and stable.
Each node on the Hedera network stores a copy of the public ledger in its latest state. It records the transactions and details of who performed them and when. Hedera accounts to hold a complete checklist of all third-generation public ledger characteristics. It currently holds the record for the highest volume of transactions possible through a blockchain.
Is Hedera the Future of Public Ledgers?
George Gilder, a Harvard graduate, wrote about Hedera in his book Life After Google stating, “this fast and efficient system may well prevail as the bottom layer of blockchains.” He also said that in the future, the distribution of wealth will be more important than the creation of wealth. Hedera hashgraph definitely is ahead in the race to redesign decentralized systems.
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