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They were generated to solve the major problem-creating decentralized currency. The main focus was to create a currency that can be used without any centralized intermediary for transferring funds from one place to another. Cryptocurrencies, such as Bitcoin, derives its value from guaranteed dearth and is not owned or controlled by a single individual or company, this is known as being decentralized. However, the major downside of the first generation was there was no control over the transactions.
The previous drawback was overcome in the second generation of blockchain technology by the introduction of Ethereum. It has turned the blockchain into an infrastructure that can host more than simple currency transactions. These contracts consist of all the clauses and conditions that will be transparent to all participants, that is, the user agreed will auto-enforce, guaranteeing trust. In the same way, as the first generation had few drawbacks even second generation had a few of them such as Scalability, Sustainability, and Interoperability. The third generation aims to overcome all these drawbacks.
When it comes to the flow of information and contracts, third generation blockchains are useful. They will be able to permit different blockchains to converse with each other. In a third generation, we have a technological platform called Cardano. It is more than just a cryptocurrency, which will be able to run financial applications currently used on a daily basis by organizations and governments. The platform is constructed in layers, which gives the system the flexibility to allow for upgrades while being easier to maintain.
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