What is a Blockchain? What is Distributed Ledger Technology (DLT)? And how can my business benefit?
Standardization, or the lack there of, seems to be a common trend in the Blockchain space. To start, it is important to note that there is no difference between Blockchain Technology and Distributed Ledger Technology. Once again this is a name that will need to be standardized.
It is important to understand the underlying technology to further render your company’s Use Case. As with all technology, there is a specific function to help solve a specific challenge. In the world of Blockchain, we aim to overcome several challenges using a decentralized ledger such as:
- Trust between Business/Parties
- Transparency
- Manuel Processing
- Authentication
- Time Sensitivity
- Intermediaries
- Golden Sources
A decentralized ledger, simply means that participants within a network all own a copy of the ledger, and that the ledger is not stored or possessed by any one single entity. As transactions or contracts are validated and written to the blockchain ledger, the network is updated with the added transaction or contract simultaneously. This concept allows different parties to access the same information at the same time, eliminating need for a central authority to protect against any fraudulent activity. Once information is stored on the ledger, it becomes immutable, trustworthy and accessible to any and all parties with the appropriate permissions to access it.
Blockchain technology can be specifically developed for both your companies use case and industry. Different Blockchains (ie. Ethereum and Hyper Ledger Fabric) utilize particular mechanisms for validating transactions. As a result, different Blockchains have different performance specifications when it comes to latency and throughput. Therefore, having an idea of the transactional volume that your organization requires is something we need to keep in mind when deciding which type of Blockchain your business requires. Having an understanding of your company’s and industry business logic in effort to develop the appropriate workflows (smart contracts) is another essential piece of information required for optimal development.
To find out if your organizations business processes would benefit from Blockchain Technology, please contact us:
https://envisionblockchain.com/contact/
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