Hi,

> I understand that 1.2 is the stable version

Yes.

The difference is listed in the change log:

http://www.h2database.com/html/changelog.html - Version 1.3.146 Beta:

# In version 1.3.x, h2.lobInDatabase (store CLOB and BLOB in the
database file) is enabled by default.
# In version 1.3.x, ANALYZE_AUTO is 2000 (automatic ANALYZE).
# In version 1.3.x, DB_CLOSE_ON_EXIT (the shutdown hook) is disabled by default.
# In version 1.3.x, DROP_RESTRICT (default action for DROP is
RESTRICT) is enabled.
# In version 1.3.x, FUNCTIONS_IN_SCHEMA (allow to store functions in a
schema) is enabled.
# In version 1.3.x, LARGE_TRANSACTIONS (support for very large
transactions) is enabled. Changes to tables without a primary key can
be buffered to disk.
# In version 1.3.x, MAX_MEMORY_ROWS_DISTINCT is set to a 10000.
# In version 1.3.x, NESTED_JOINS (nested joins and right outer joins)
is enabled.
# In version 1.3.x, OPTIMIZE_INSERT_FROM_SELECT (speed up CREATE TABLE
... AS SELECT) is enabled.
# In version 1.3.x, OPTIMIZE_OR (convert OR conditions to IN(..) if
possible) is enabled.
# In version 1.3.x, QUERY_CACHE_SIZE is enabled.
# In version 1.3.x, SELECT_FOR_UPDATE_MVCC (MVCC and SELECT FOR
UPDATE) is enabled.
# In version 1.3.x, RUNSCRIPT and SCRIPT (commands and tools), use
UTF-8 by default (ScriptCommand.charset).
# In version 1.3.x, Lucene 3 is used by default. Issue 147.

Regards,
Thomas

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