{"id":10607,"date":"2023-06-16T20:39:43","date_gmt":"2023-06-16T20:39:43","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=10607"},"modified":"2022-05-17T10:58:46","modified_gmt":"2022-05-17T10:58:46","slug":"what-is-third-generation-blockchain","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/what-is-third-generation-blockchain","title":{"rendered":"What is third generation blockchain?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Alternar tabla de contenidos\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-third-generation-blockchain\/#characteristics_of_third_generation_blockchain\" >Characteristics of third generation blockchain<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-third-generation-blockchain\/#scalability\" >Scalability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-third-generation-blockchain\/#sustainability\" >Sustainability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-third-generation-blockchain\/#speed\" >Speed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-third-generation-blockchain\/#interoperability\" >Interoperability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-third-generation-blockchain\/#the_future_of_the_internet_of_value\" >The future of the Internet of Value<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><p>In previous articles we have explored the\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-first-generation-blockchain\/\">first<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-second-generation-blockchain\/\">second<\/a>\u00a0<strong>generation of blockchains<\/strong>. The first characterized by Bitcoin and the second by Ethereum.<\/p>\n<p>&nbsp;<\/p>\n<p>Since the\u00a0<strong>development of\u00a0<a href=\"https:\/\/www.bitnovo.com\/en\/buy\/ethereum\/\">Ethereum<\/a><\/strong>, there has been\u00a0<strong>an explosion<\/strong>\u00a0of new\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-smart-contract\/\">smart contract<\/a>\u00a0platforms and\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-dapp\/\">decentralized applications<\/a>. These blockchains are therefore very diverse. The most common points are the use of\u00a0\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-proof-of-stake-and-how-does-it-work\/\">Proof of Stake<\/a>\u00a0to reach consensus. They also focus on smart contract functionalities, thus showing themselves to be\u00a0<strong>competitors of Ethereum<\/strong>.<\/p>\n<p>&nbsp;<\/p>\n<p>As the renowned\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/who-is-andreas-antonopoulos\/\">Andreas Antonopoulos<\/a>\u00a0says, everything points to a future of<strong>\u00a0multiple blockchains<\/strong>\u00a0forming a single network,\u00a0<strong>the Internet of Value<\/strong>. Unlike the other two generations, there is no clear figurehead for the third generation, although\u00a0<strong>Ethereum 2.0<\/strong>,\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/all-about-cardano-ada\/\">Cardano<\/a>,\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-polkadot-dot\/\">Polkadot<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/all-about-solana-sol\/\">Solana<\/a>\u00a0could well be.<\/p>\n<p>&nbsp;<\/p>\n<p>It is common to see that these platforms make decisions in their design to maximize properties that the market demands. As we have already explained, in the blockchain world\u00a0<strong>nothing is free<\/strong>, and every decision has effects on other aspects (the \u201c<strong>tradeoffs<\/strong>\u201c). An example of this is Binance Smart Chain, which being more centralized can offer much lower commissions than Ethereum. This does not mean that X is better or worse than Y, but that each can\u00a0<strong>maximize a property<\/strong>.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"characteristics_of_third_generation_blockchain\"><\/span><strong>Characteristics of third generation blockchain<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>Do you want to know what are the advantages and disadvantages of third generation blockchains? Below I will explain you in which aspects they are trying to improve and what are the problems they are facing.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h3><span class=\"ez-toc-section\" id=\"scalability\"><\/span><strong>Scalability<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>One of the properties that third-generation blockchains seek to maximize is scalability.\u00a0<strong>Scalability<\/strong>\u00a0is the topic that has been on every developer\u2019s lips since the<strong>\u00a0inception of Bitcoin<\/strong>.\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/who-is-satoshi-nakamoto\/\">Satoshi Nakamoto<\/a>\u00a0himself left the Bitcoin block size fixed at 1 MB temporarily while solutions were being investigated (in favor of decentralization).<\/p>\n<p>&nbsp;<\/p>\n<p>However other blockchains\u00a0<strong>do not seek to maximize decentralization<\/strong>\u00a0like Bitcoin, and use their greater\u00a0<strong>centralization<\/strong>\u00a0as a\u00a0<strong>competitive advantage<\/strong>\u00a0with larger blocks (such as Binance Smart Chain). Another way in which third-generation blockchains achieve more scalability is through\u00a0<strong>sharding<\/strong>.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Sharding<\/strong>\u00a0is a solution that\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-the-algorithm-casper\/\">Ethereum 2.0<\/a>\u00a0will use. It basically consists of dividing the blockchain into\u00a0<strong>64 different blockchains<\/strong>, coordinated by a chain called\u00a0<strong>beacon chain<\/strong>. Each one can have different functions and can be\u00a0<strong>verified individually<\/strong>, reducing\u00a0<strong>hardware requirements<\/strong>\u00a0(to verify the information). This design has its lights and shadows, one of its major criticisms is<strong>\u00a0that a disruption in one chain can affect the rest<\/strong>\u00a0and it is still an\u00a0<strong>extension of layer 1<\/strong>\u00a0(the blockchain). Another example is Polkadot\u2019s\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-parachain-and-how-does-it-work\/\">parachains<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<p>One form with more potential that is being investigated is<strong>\u00a0rollups<\/strong>, especially\u00a0<strong>zero knowledge rollups<\/strong>\u00a0using\u00a0<strong>ZK-SNARKS<\/strong>\u00a0technology. This technology is being developed on Ethereum. Unlike sharding, rollups can be considered\u00a0<strong>second layer solutions<\/strong>. Other second layer solutions are\u00a0<strong>Plasma<\/strong>\u00a0(used in\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-polygon-the-eth-scalability-solution\/\">Polygon<\/a>),\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-the-lightning-network\/\">Lightning Network<\/a>\u00a0(mostly used in Bitcoin) and\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-sidechain\/\">sidechains<\/a>.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div id=\"image_1944691109\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img fetchpriority=\"high\" decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-3era-generacion.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-3era-generacion.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-3era-generacion-300x205.jpg 300w\" alt=\"Qu\u00e9-es-la-blockchain-de-3era-generaci\u00f3n\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-3era-generacion.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-3era-generacion-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-3era-generacion.jpg\" data-sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h3><span class=\"ez-toc-section\" id=\"sustainability\"><\/span><strong>Sustainability<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>Another important point that 3rd generation blockchains seek to maximize is\u00a0<strong>sustainability<\/strong>. In general,<strong>\u00a0Proof of Stake<\/strong>\u00a0(PoS) is used to have\u00a0<strong>minimum network energy consumption<\/strong>. In PoS,\u00a0<strong>miners are large holders<\/strong>\u00a0of the coin and are not interested in\u00a0<strong>attacking the network<\/strong>\u00a0as it could have a\u00a0<strong>negative effect on the price<\/strong>\u00a0of the coin.<\/p>\n<p>&nbsp;<\/p>\n<p>The tradeoff of this is that it tends to\u00a0<strong>centralization<\/strong>.\u00a0<strong>The largest holders<\/strong>\u00a0of a currency earn the\u00a0<strong>most rewards<\/strong>\u00a0by\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-cryptocurrency-staking\/\">staking<\/a>, which in turn can lead to staking,\u00a0<strong>generating even more<\/strong>. By this simple\u00a0<strong>game theory<\/strong>\u00a0there is a\u00a0<strong>pressure<\/strong>\u00a0towards\u00a0<strong>centralization of supply<\/strong>.<\/p>\n<p>&nbsp;<\/p>\n<p>Other consensus protocols aimed at reducing energy consumption include\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-chia-xch\/\">Chia<\/a>\u00a0<strong>Proof of Space and Time<\/strong>\u00a0(which requires hard disks) and\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-stacks-defi-for-bitcoin\/\">Stacks<\/a>\u2018\u00a0<strong>Proof of Transfer<\/strong>\u00a0(which requires spending Bitcoin).<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div id=\"image_1290347430\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-3era-generacion1.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-3era-generacion1.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-3era-generacion1-300x205.jpg 300w\" alt=\"Qu\u00e9-es-la-blockchain-de-3era-generaci\u00f3n\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-3era-generacion1.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-3era-generacion1-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-3era-generacion1.jpg\" data-sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h3><span class=\"ez-toc-section\" id=\"speed\"><\/span>Speed<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p><strong>PoS systems<\/strong>\u00a0are better for\u00a0<strong>speed (fast confirmations)<\/strong>. Although again, with its downside of\u00a0<strong>lower security guarantees.<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>Another way to improve transaction speed is the\u00a0<strong>micro block<\/strong>\u00a0model used in Stacks, and even\u00a0<strong>second layer solutions<\/strong>.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h3><span class=\"ez-toc-section\" id=\"interoperability\"><\/span><strong>Interoperability<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>In a\u00a0<strong>blockchain network<\/strong>, as everything points to the Internet of Value,\u00a0<strong>interoperability and standardization are necessary<\/strong>. One of the big projects dedicated to this is\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-chainlink\/\">Chainlink<\/a>, which focuses on the use of\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-blockchain-oracle\/\">oracles<\/a>\u00a0(which allow bringing external information into a blockchain).<\/p>\n<p>Atomic swaps (trustless exchanges of different currencies) also play an important role in this blockchain network. These\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-an-atomic-swap\/\">atomic swaps<\/a>\u00a0can be used over\u00a0<strong>networks such as Lightning<\/strong>\u00a0for greater anonymity and scalability and be an important part of\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/cex-and-dex-what-are-the-differences\/\">decentralized exchanges<\/a>\u00a0(DEXs).<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h3><span class=\"ez-toc-section\" id=\"the_future_of_the_internet_of_value\"><\/span>The future of the Internet of Value<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>All data currently points to the\u00a0<strong>future of the Internet of Value<\/strong>\u00a0being shaped by\u00a0<strong>different blockchains and assets<\/strong>. Many will not pass the\u00a0<strong>test of time and the market<\/strong>, and others will endure by finding a\u00a0<strong>niche market<\/strong>.<\/p>\n<p>&nbsp;<\/p>\n<p>Both\u00a0<strong>Bitcoin<\/strong>\u00a0and\u00a0<strong>Ethereum<\/strong>\u00a0have established themselves in their respective niches, but the latter has gained many\u00a0<strong>competitors<\/strong>\u00a0<strong>testing different<\/strong>\u00a0designs. Ethereum 2.0 will most likely continue to consolidate as its competitors gain ground.<\/p>\n<p>&nbsp;<\/p>\n<p>When all these technologies have matured, say in a decade, we will have a\u00a0<strong>consolidation<\/strong>\u00a0of the\u00a0<strong>surviving chains<\/strong>.<\/p>\n<p>&nbsp;<\/p>\n<p>As an analogy we can say that we are<strong>\u00a0in the<\/strong>\u00a0<strong>90s of the Internet<\/strong>, living a historical moment\u00a0<strong>of technological experimentation<\/strong>\u00a0that our grandchildren will study.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>In previous articles we have explored the\u00a0first\u00a0and\u00a0second\u00a0generation of blockchains. The first characterized by Bitcoin and the second by Ethereum. &nbsp; Since the\u00a0development of\u00a0Ethereum, there has been\u00a0an explosion\u00a0of new\u00a0smart contract\u00a0platforms and\u00a0decentralized applications. These blockchains are therefore very diverse. The most common points are the use of\u00a0\u00a0Proof of Stake\u00a0to reach consensus. They also focus on smart contract [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7744,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[185],"tags":[],"class_list":["post-10607","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-en"],"_links":{"self":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10607","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/comments?post=10607"}],"version-history":[{"count":0,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10607\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/7744"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=10607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=10607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=10607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}