1.1.0. Smartchains
In other words, first generation blockchains cannot execute these extra activities (lending, savings, insurance, gaming, etc.).
First generation blockchains are those that have the Proof of Work (POW) algorithm as discussed in Class 3 of the Secondary School of Cryptocurrencies. The POW blockchains are old school, and they include popular ones we know – Bitcoin, XRP, Stella, Monero, Bitcoin Cash, and Bitcoin SV.
On the other hand, the second and third generations of blockchains that use Proof of Stake (POS) and Proof of Authority (POA) are inbuilt with the mechanism to perform these extra activities of lending, savings, insurance, gaming, etc.
These extra activities give Ethereum and the newer blockchains a smarter look than all the POW blockchains. Hence, the Ethereum blockchain is known as the Ethereum Smart Chain. The extra activities that can be executed on Ethereum are called Smart Contracts because they require a special agreement between the user and the blockchain to be able to execute them without any third-party involvement.
In simple terms:
Smart Chain = Blockchain + Smart Contract.
That is, the smart contracts on a blockchain transforms the blockchain into a Smart Chain.