{"id":10635,"date":"2023-05-20T19:09:16","date_gmt":"2023-05-20T19:09:16","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=10635"},"modified":"2022-05-17T11:22:07","modified_gmt":"2022-05-17T11:22:07","slug":"what-is-second-generation-blockchain","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/what-is-second-generation-blockchain","title":{"rendered":"What is second 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-second-generation-blockchain\/#turing-complete\" >Turing-complete<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-second-generation-blockchain\/#what_is_gas\" >What is gas?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-second-generation-blockchain\/#ethereum_virtual_machine\" >Ethereum Virtual Machine<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-second-generation-blockchain\/#account_system\" >Account system<\/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-second-generation-blockchain\/#tokens_erc-20\" >Tokens ERC-20<\/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-second-generation-blockchain\/#nfts_and_domains\" >NFTs and domains<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-second-generation-blockchain\/#ethereum_vs_the_world\" >Ethereum vs. the world<\/a><\/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\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><p>In a previous\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-first-generation-blockchain\/\">blog post<\/a>\u00a0we made an introduction to the blockchain\u00a0<strong>generations<\/strong>\u00a0and explained the first of them, initiated by the revolutionary Bitcoin.<\/p>\n<p>&nbsp;<\/p>\n<p>In this article we will discuss the innovations of the second generation, started by\u00a0<a href=\"https:\/\/www.bitnovo.com\/en\/buy\/ethereum\/\">Ethereum<\/a>, the second largest<strong>\u00a0blockchain and cryptocurrency<\/strong>\u00a0in the galaxy (blockchains in other galaxies have not yet been discovered).<\/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<h1><strong>Ethereum\u2019s vision<\/strong><\/h1>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p><strong>Ethereum\u00a0<\/strong>was proposed in\u00a0<strong>2013<\/strong>\u00a0by\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/who-is-vitalik-buterin\/\">Vitalik Buterin<\/a>, a young programmer and Bitcoin enthusiast. Vitalik\u2019s idea was that a blockchain could enable\u00a0<strong>decentralized applications<\/strong>\u00a0(<a href=\"https:\/\/www.bitnovo.com\/blog\/que-es-una-dapp\/\">dapps<\/a>) with a general purpose language. Hence, Ethereum\u2019s vision was to function as a kind of\u00a0<strong>world computer<\/strong>\u00a0and even be the basis of the decentralized Internet (<strong>web 3.0<\/strong>).<\/p>\n<p>&nbsp;<\/p>\n<p>In this global computer, the execution of applications is paid for with the blockchain\u2019s\u00a0<strong>native currency<\/strong>,\u00a0<strong>ether (ETH)<\/strong>. Its language, called Solidity, has made writing\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-smart-contract\/\">smart contracts<\/a>\u00a0(contracts made with computer code that are automatically fulfilled) and\u00a0<strong>decentralized applications<\/strong>\u00a0(apps that do not depend on a central entity, but on the same community of users that use it) accessible to all programmers in the world. Another narrative that has also been growing in Ethereum is that of\u00a0<strong>decentralized finance<\/strong>\u00a0or\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-defi-o-decentralized-finance\/\">DeFi<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<p>Ethereum finally launched in 2014, with a practice that became the industry standard (and also criticized by many), a\u00a0<strong>pre-mining<\/strong>\u00a0to\u00a0<strong>fund development<\/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<div id=\"image_1466081877\" 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-2da-generacion1.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-2da-generacion1.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-2da-generacion1-300x205.jpg 300w\" alt=\"Qu\u00e9 es la blockchain de 2da generaci\u00f3n?\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-2da-generacion1.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-2da-generacion1-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-2da-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<h2><span class=\"ez-toc-section\" id=\"turing-complete\"><\/span><strong>Turing-complete<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>Ethereum is\u00a0<strong>Turing-complete<\/strong>. In the world of cryptocurrencies this means that\u00a0<strong>contracts and dapps<\/strong>\u00a0can be as\u00a0<strong>complex<\/strong>\u00a0as you want. While Bitcoin used a very simple (and secure) language,\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-bitcoin-script\/\">Bitcoin Script<\/a>, Ethereum uses a language with a\u00a0<strong>larger attack surface (more risk)<\/strong>, but which allows many more things.<\/p>\n<p>&nbsp;<\/p>\n<p>In addition, Ethereum uses\u00a0<strong>high-level languages<\/strong>, that is, languages that are easier for programmers to learn and use. Once the contract or dapp is written, the code goes through a\u00a0<strong>compiler<\/strong>\u00a0and is \u201ctranslated\u201d into Ethereum\u2019s native language (called\u00a0<strong>bytecode<\/strong>). Ethereum does not understand high-level languages, only bytecode (just as a computer understands binary code but not JavaScript or Python).<\/p>\n<p>&nbsp;<\/p>\n<p>In practice almost nobody understands bytecode and the most widely used language is\u00a0<strong>Solidity<\/strong>\u00a0(which has become\u00a0<strong>standard in the smart contract industry<\/strong>). One of the big problems with Solidity is that it does not optimize security and\u00a0<strong>exploits or hacks<\/strong>\u00a0are frequent, resulting in the theft of large amounts of money. Other languages such as\u00a0<strong>Lisp<\/strong>\u00a0go along the lines of maximizing security.<\/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=\"what_is_gas\"><\/span><strong>What is gas?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p><strong>A term popularized<\/strong>\u00a0with the second generation of blockchains\u00a0<strong>is<\/strong>\u00a0<strong>gas<\/strong>. Gas\u00a0<strong>is a unit<\/strong>\u00a0that reflects the<strong>\u00a0computational cost<\/strong>\u00a0of performing an operation. For example an addition might cost 1 gas and a multiplication 8 gas.<\/p>\n<p>&nbsp;<\/p>\n<p>The metaphor used is that\u00a0<strong>contract execution<\/strong>\u00a0spends gasoline (gas) and<strong>\u00a0is paid for with ether<\/strong>. The price of gas (in ether) can go up if there is a lot of\u00a0<strong>transaction demand<\/strong>\u00a0or down if there is less.<\/p>\n<p>&nbsp;<\/p>\n<p>It is similar to how in Bitcoin you pay a commission based on the weight of your transaction. The unit used to measure the price of gas is the\u00a0<strong>Gwei<\/strong>\u00a0or 0.000000001 ether (yes, easier to use Gwei).<\/p>\n<p>&nbsp;<\/p>\n<p>By putting a<strong>\u00a0monetary cost<\/strong>\u00a0on the execution of contracts we prevent the network from being abused. This is especially important when talking about a\u00a0<strong>Turing-complete language<\/strong>\u00a0because code could be written that results in an\u00a0<strong>endless execution<\/strong>\u00a0(like an infinite loop).<\/p>\n<p>If you want to know more about how ESG works in ethereum, you can check out\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-gas-in-ethereum\/\">this article<\/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_641226662\" 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-2da-generacion2.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-2da-generacion2.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-2da-generacion2-300x205.jpg 300w\" alt=\"Qu\u00e9 es la blockchain de 2da generaci\u00f3n?\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-2da-generacion2.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-2da-generacion2-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Que-es-la-blockchain-de-2da-generacion2.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<h2><span class=\"ez-toc-section\" id=\"ethereum_virtual_machine\"><\/span>Ethereum Virtual Machine<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>The\u00a0<strong>bytecode<\/strong>\u00a0(native language) is executed by the\u00a0<strong>network computers<\/strong>\u00a0(nodes and miners) in the<strong>\u00a0Ethereum Virtual Machine<\/strong>\u00a0(<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-the-ethereum-virtual-machine\/\">EVM<\/a>). Special attention should be paid that if the gas paid for execution is less than the required gas, the transaction is invalid and is not processed.<\/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=\"account_system\"><\/span><strong>Account system<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>Unlike Bitcoin\u2019s\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-utxo-in-bitcoin\/\">UTXO<\/a><strong>\u00a0model<\/strong>, in which the network monitors<strong>\u00a0coins<\/strong>\u00a0as \u201c<strong>transaction outputs<\/strong>\u201c, Ethereum adopts an account model. In this system the network monitors\u00a0<strong>balances and data<\/strong>\u00a0pertaining to accounts. One implication of this is that ether is a more fungible currency than bitcoin.<\/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=\"tokens_erc-20\"><\/span><strong>Tokens ERC-20<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>A common use of contracts in Ethereum is\u00a0<strong>to create a ledger<\/strong>\u00a0within Ethereum itself, that is, to create a new\u00a0<strong>token<\/strong>. The most commonly used standard is\u00a0<strong>ERC-20<\/strong>\u00a0and allows to create new tokens\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/how-to-create-a-token\/\">very easily<\/a>, without the need to launch a new blockchain.<\/p>\n<p>&nbsp;<\/p>\n<p>As it is still a contract in Ethereum, to make token transfers you have to<strong>\u00a0pay for gas in ether<\/strong>.<\/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=\"nfts_and_domains\"><\/span>NFTs and domains<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>Just as we have<strong>\u00a0fungible tokens<\/strong>\u00a0(ERC-20), we can create\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-are-nft-tokens-and-how-do-they-work\/\">non fungible tokens<\/a>\u00a0that have recently become popular. However, contrary to popular belief, this innovation did not start in Ethereum but in Bitcoin with\u00a0<strong>Counterparty<\/strong>. The same goes for decentralized domains (<strong>Ethereum Name Service<\/strong>) that started on Bitcoin with\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-namecoin\/\">Namecoin<\/a>.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"ethereum_vs_the_world\"><\/span><strong>Ethereum vs. the world<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>As we have seen Ethereum has a focus on\u00a0<strong>innovation<\/strong>\u00a0allowing much more\u00a0<strong>flexibility<\/strong>\u00a0than Bitcoin. While Bitcoin dominates the niche of store of value, Ethereum dominates the\u00a0<strong>niche of smart contracts<\/strong>\u00a0(although it also has monetary use).<\/p>\n<p>&nbsp;<\/p>\n<p>But in the market for smart contract platforms and decentralized applications, there has been a\u00a0<strong>Cambrian explosion<\/strong>. Ethereum now finds itself surrounded by\u00a0<strong>competitors, the third generation blockchains<\/strong>. And Ethereum itself is on its way to becoming a third-generation blockchain.<\/p>\n<p>&nbsp;<\/p>\n<p>But that\u2019s all for now, the last generation will be covered in a future article!<\/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\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>In a previous\u00a0blog post\u00a0we made an introduction to the blockchain\u00a0generations\u00a0and explained the first of them, initiated by the revolutionary Bitcoin. &nbsp; In this article we will discuss the innovations of the second generation, started by\u00a0Ethereum, the second largest\u00a0blockchain and cryptocurrency\u00a0in the galaxy (blockchains in other galaxies have not yet been discovered). Ethereum\u2019s vision Ethereum\u00a0was proposed [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7816,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[185],"tags":[],"class_list":["post-10635","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\/10635","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=10635"}],"version-history":[{"count":0,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10635\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/7816"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=10635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=10635"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=10635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}