A Beginners Guide to Distributed ledger Technology
Jan 14, 2018 Posted / 7812 Views
Distributed ledger can be described as an agreement of repeated, shared and synchronized digital data accessed remotely by different nodes located in different places. The technology deploys a decentralized system of data administration.
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To make a distributed ledger complete, a P2P network and a consensus agreement are needed to enable data replication across different nodes. The commonest form of distributed ledger design is the blockchain system. Blockchains can either be public or private depending on the intended need of the Blockchain system.
However not all distributed ledgers use a chain of blocks in order to effectively ensure a secure achievement of distributed consensus. The blockchain is just one type of a data structure taken to be a distributed ledger.
Distributed Ledger Technology has a wide range of applications in our modern day societies, ranging from Governance, Healthcare, Real Estate to Land and Banking systems. Currently, banks are significantly deploying distributed ledger technologies so as to reduce operational costs and risks.
In the future, distributed Ledger is expected to develop in executing the internet of things in a programmable economy. The development of smart devices such as smart cars, smart homes, and appliances will be harmonized and secured with a distributed ledger system. Consider of the Internet of things such as the risk of attack by hackers if it’s not secured with a robust and dynamic system like the distributed ledger.
Distributed ledger is not just a Blockchain, the blockchain is just one of the vast application of the distributed ledger technology. Distributed ledgers are created by algorithms that are powerful, disruptive innovations that could transform the delivery of public and private services to enhance productivity through a wide range of possible applications.
Distributed ledger technologies, however, is still at a very early stage of development with just a small range of already existing applications currently. The technology is expected to become mainstream in the few coming years by capturing the attention of a wide range of developers from a wide range of sectors.
Blockchain alone has had numerous successes since it got introduced. Successfully application of blockchain ranged from finance and accounting, healthcare, governance, and Telecommunication.
Experts believe that distributed Ledger technologies, when merged with artificial intelligence, smart contracts and the internet of things, will become of the most important human inventions of the modern time.
Deployment of distributed ledger technologies in finance has seemed to be one of its most important applications lately. The technology principled in decentralized data management and processing has the following advantages in finance.
Transaction processing time is increased to almost instant for all transactions to any part of the world.
Customers gain more trust on the financial institution because of the publicly share unchangeable records.
Single point failure does not affect services in the distributed system.
Operations costs are significantly reduced.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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