What Is the Difference between Version 1 Quotas and Verions 2 Quotas?

Problem scenario
For file system quotas on Linux machines, there are different versions (1 and 2). What is the difference?

Solution
Version 1 is for the Linux version 2.2 kernel. For more recent kernels, version 2 is used. (The source of this answer is yolinux.com.)

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