Distributed Ledger Technology- DLT:
By: N Kabilan
Tags: Blockchain, Distributed Ledgers, Medium, Blockchain Technology, Bitcoin

Distributed Ledger Technology- DLT:

Image from: shell

Hi folks 😊, Here is my new blog series on Blockchain. Hope you learn a lot from it. Subscribe me for getting notification for the blogs I publish in this series. In the Day-1 of Blockchain. We are going to know about Distributed ledger technology, it’s benefits, DLT’s effect on business and the difference between Distributed Ledger Technology and Traditional Technology.

Distributed ledger technology (DLT) is a digital system for recording the transactions of digital asserts. These are stored multiple times in multiple different distributed nodes at different locations. Distributed ledger technology (DLT) has great potential to change the financial sector, making it more efficient, resilient and reliable. Bitcoin’s blockchain is an example of peer-to-peer Distributed ledger technology.

Image from: unicsoft

In DLT Database spread across multiple computers. so it reduces the risk of Central storage. Using DLT we have different types of services like Blockchain, Tempo, Directed Acyclic Graph (DAG) etc.

Tempo is based upon subsets of ledger. In Tempo the person conducts the transaction and one who has access to store, can only store the transactions. While in blockchain everyone can store the transactions. In DAG’s , the transactions are verified by building a new transactions on top the existing transaction.

Benefits of DLT:

Distributed Ledger Technologies have many potentials.

Remove Middlemen: Distributed Ledger Technology reduces the need for an intermediary middleman to transfer information and goods between buyers and sellers.

Fast Transactions: It has potential to speed up the transaction by removing middleman. Removes cost taken by middlemen.

Reduces Costs: Cost taken by middle man are cut off in Distributed Ledger technology.

More Secure: Distributed Ledger technology is much more secure. In this Each node hold the record. That creates a system that creates system that is more difficult to manipulate the the system.

Transparent: Distributed Ledger is a much more transparent way of handling records, because the information is shared between different nodes and spread across the network.

How DLT affect Business?

Distributed Ledger Technology creates a permanent, decentralized, trustless ledger of records. Accessible to all across globe without the help of third-party to carryout the transactions.

Like in crypto markets, cryptocurrencies are not their product. It is more like creating a new economic systems with tokens as the medium of exchange and Distributed Ledger technology gives the rules and regulations for the users of this system.

These effects can be divided into three major components

Transforms Internal Processes

Transforms Business Models

New Opportunities

Transforms Internal Processes:

This includes DLTs potential along internal processes and interaction with business’ value network. It can be in the form of:

Payments

Assert Tracking

Data Sharing

Identity Management

Transforms Business Models:

This includes looking beyond technology and including the value potential related to new types of customer interactions and innovative ideas for business models like

Customer Engagements

Micro Transactions

Creating New Markets

New Opportunities:

Distributed Ledger Technology might create new opportunities which are neither part of the core vale chain nor the core business model:

Funding

Access to Data

Crowd Collaboration

Self Governed Organizations

Difference between Distributed Ledger Technology and Traditional Technology