Distributed Ledger Technology or international short phrase, DLT refers to the technological infrastructure and protocols that provide unchanged access, verification and recording update within a network of multiple assets or locations.
Distributed Ledger Technology, more commonly known as blockchain technology, was introduced to the world by bitcoin. It is currently very popular in the world of technology given its potential among sectors. In simple terms, distributed notebook technology comes up with the idea of a decentralized network against the traditional centralized mechanism. Distributed ledger technology is thought to have extensive implications for third parties on trust-based sectors and institutions.
Blockchain, which divides operations into blocks that are chained to each other and then publishes them to nodes in the network, is probably the best known distributed ledger technology. The Bitcoin created in 2009 is the main reason why the crypto currency is so valuable today. Bitcoin is also known as a peer-to-peer network.
So, how does it work?
A distributed ledger is a database that is distributed and synchronized across a network across multiple sites, entities, or geographies. Distributed ledgers make transactions more public witnesses, making cyber attacks more difficult. Participants in each node of the network can access shared records on that network and become the owner of the same copy. In addition, all changes or additions to the ledger are reflected and copied to all participants in minutes or even seconds. In fact, the main thing that lies beneath the distributed ledger technology is the blockchain, which is the technology underlying the bitcoin.
Throughout history, a central authority was needed to verify the authenticity of the transactions recorded in the notebooks. For example, banks’ verification of financial transactions. Now, 21st century technology, cryptography, advanced algorithms, more powerful computing power have made the next step in keeping records, and distributed ledger technology is often on the agenda.
Why is it so important?
Distributed Ledger Technology basically disrupts banks, notaries, and many institutions to disrupt the commissions received from these institutions and their burden on the system. It is a fairly secure system because the data is linked and encrypted with one. It is not possible to attack from a single point without affecting all historical data. Nowadays, banks are sometimes desperate in the face of cyber attacks, while DLT technology is extremely reliable. It provides transparency and the entire network witnesses it and verifies its accuracy when data is distributed. This results in a transparent arrangement. This transparency minimizes the possibility of attacking data.
Areas of Distributed Ledger Technology
Distributed Ledger Technology was primarily active in the banking and finance sectors. With the rise of Bitcoin and the use of DLT technology-based blog chain architecture in the background, the eyes have been translated into Distributed Ledger Technology. However, if you were able to tell a little about DLT technology, you should have noticed that in addition to financial ledgers, digital ledgers can be used in many areas, including public and private agreements. Experts believe that digital ledgers can be used in tax collection, property title transfers, distribution of social benefits and even voting procedures. They also said that Distributed Ledger Technology can be used to process and execute legal documents and other similar changes.
For example, if this technology is used in the voting system, no voting can be changed, everyone sees the entry into each voting system used. In addition, without the need for news agencies, we can track the results instantly without the need for counting votes.
How does future of Distributed Ledger Technology look like?
Anyone with average intelligence can see that if crypto coins like Distributed Notebook Technology, such as Bitcoin, are actively used all over the world, the banks will be doomed to disappear.
If the DLT is integrated into all systems such as title deed, health, voting, energy purchase and sale, there may be states and many large companies disappear. All institutions and businesses that conduct business with the commission and supervise the agreements between the buyer and the seller may be absent. For these developments, which are quite good and beautiful for humanity, the world’s most money and power-holding authorities must be destroyed, but this is not an easy development process.
This topic reminds me that after the discovery of the first solar-powered or electric-powered vehicles, oil giants collect all patents and use force when needed, so technology does not become available. Distributed Ledger technology is a technology that targets the world’s most powerful people and institutions, so it’s development will take time. However, When we fully control this technology, the future seems to be much easier.