Blockchain 2.0 refers to the evolution of blockchain technology beyond basic cryptocurrency transactions. While the initial iteration focused primarily on peer-to-peer currency exchange, Blockchain 2.0 introduces the concept of smart contracts. Smart contracts are self-executing agreements with the terms directly written into code. They automate processes and facilitate, verify, or enforce the negotiation and performance of a contract without intermediaries.

This innovation allows for decentralized applications (dApps) to be built on blockchain networks, expanding functionality beyond simple transactions. Ethereum is a primary example of a Blockchain 2.0 platform. It enables developers to create a wide range of applications, such as decentralized finance (DeFi) services, games, and identity solutions.

This level of programmability increases the versatility of blockchains, making them useful for various industries beyond finance. Overall, Blockchain 2.0 represents a significant leap forward, paving the way for a more functional and adaptable use of blockchain technology.