Every country has its currency. And in our fast phasing world touched by technology, it is no wonder how they came up with the virtual currency or what we know as cryptocurrency. Many of our transactions nowadays don’t require us to pay physical currencies easier with one or two taps on your device. But what is 3rd generation cryptocurrency? We will tackle this in this article, so if you are interested, make sure to read this till the end.
Understanding the Generations of Cryptocurrency
Learning the 3rd generation blockchain would be hard if you aren’t aware of the cryptocurrency generations. And if we are to describe it, you are like landing on a mountain without using the trail. You can see the beauty on top, but you missed the fun and parts of the trail that might have made your trip more useful. The third generation isn’t possible without the first and second. So we have provided the information below that will help you understand it better.
- The First Generation. The first generation of the virtual currency of cryptocurrency is the Bitcoin. It was created in 2009 which aims to promote instant payment. They are protected by codes that are printed in each of them. And here’s the thing. Many people are so hooked with this because it is not owned by the bank nor the government. To simplify bitcoin, it is like a computer file inside the application of your phone or computer that you can use to buy, pay, or invest. So yes, it is virtual or digital money. And since these are digital or virtual currencies, we can’t keep them in our tangible wallet. Only a digital wallet can hold it in which you can get from an app. Now, if you are curious about how you can get bitcoins, the answer is in your wallet. Technically you will be converting your real money into digital or virtual money. So if you want to buy things online, you can pay with this. And if you wish to sell something, you can also receive a bitcoin from your client. Plus, they can also be created. But it would require your skill and patience to make one.
- The Second Generation. With the success of Bitcoin, here comes the birth of the Ethereum or the second generation in 2015. People have been interested in using cryptocurrency because you can buy a property or a thing anonymously. Plus, they are hard to hack because they are recorded publicly. With this, Ethereum was made better compared to bitcoin because the third party will have a hard time accessing it for fraud or downtime. Technically, it is a platform that uses its own cryptocurrency currency called “Ether.” This works best if you are a developer who aims to run an application in Ethereum. It can help you secure your trade with codes. Ethereum makes SmartContracts possible in the simplest explanation, and unlike bitcoin, its cryptocurrency Ether is easier to get. Nowadays, many companies have invested in Ethereum like Microsoft, Amazon, and more.
But going back to your question, what is 3rd generation cryptocurrency? Learn the answer below.
It is Decentralized…
So, what is 3rd generation cryptocurrency? The perfect word would be “decentralized.” It is similar to the first and second generation when it comes to the use of ledger technology or blockchain. It is not owned by a bank, government, or a famous authority. How cool is that, right?
It is also known as 3.0 Generation
Future, this is what is 3rd generation cryptocurrency is known for. Unlike Ether used in the Ethereum platform, this generation is used not just by one but three platforms known as Cardano, EOS, and Aion. Aside from these, there is also Zilliqa and ArcBlock. It offers instant transactions, which is faster than the first and second generation. And if you are using it, you will experience fee-less transactions every time you buy, pay, or invest.
It uses NANO Cryptocurrency
If the application uses Bitcoin and Ethereum has Ether, the third-generation cryptocurrency uses NANO cryptocurrency. They called it NANO because you can receive or send it in not more than three seconds, whatever your location is.
It is More Reliable
With its three working platforms, developers, investors, and users will find it very reliable. And to help you see what we mean, we’ll introduce them one by one to you.
- EOS – this platform continues to develop for it aims for aggressive development.
- Cardano – sustainability is what many developers are aiming to get more profit. And this is what Cardano can bring. Aside from that, it can handle the challenging problems in the blockchains at present.
- Aion – if your problem is with privacy, scales, and operation, you can rely upon this platform. Like Ethereum, it is perfect for smart contacts. But it has more edge in terms of development and operation.
Virtual or digital currencies have been evolving because of the support of our growing population. With this, the investment, payment, and transactions became easier with a few taps on our device. And now that you learned about what is 3rd generation cryptocurrency, it would be easier for you to understand where and how you can use it. You also learned about the generations of the currencies, so you can understand more of its capabilities. Discover more about cryptocurrencies here!