As new technology develops, the number of people exposed to this new technology increases and the language used to describe the new technology evolves.
Initially, the language was limited to Bitcoin. Now, a person is likely to see any of the following words or phrases that theoretically mean all different things: Bitcoin, Block Chain, Blockchain, Blockchain, Private Blockchain, Public Blockchain, Distributed Ledger, Distributed Ledgers, Decentralized Ledger, shared ledgers, et al.In addition, the main proponents of the new technology were unpolished and unproven. Often, if someone had heard of bitcoin, they had heard about the failure of the Mt Gox exchange, or they thought that bitcoin was something that a person used to buy drugs unlawful or to hire a hitman.
The reality was not so far.How to get people to forget failed exchanges, drugs and hitmen? Bring them to focus on “the technology behind bitcoin” and ask them to think about other potential implementations. Once the conversation exceeded the currency, people started looking for a new word. This search led them to the blockchain.The blockchain is a transaction chain that makes bitcoin possible. The term refers to a collection of bitcoin transactions grouped into blocks and linked by cryptography. This link is part of what makes it almost impossible to distort bitcoin transactions.In a sense, the blockchain provides true decentralized trust and distributed consensus, but rebranding, or redirecting people’s attention, to blockchain and far from bitcoin may be just a clever marketing trick.
Many people argue that you can not separate the blockchain from bitcoin. The thought is that you can not divide bitcoin into its constituent parts because the parts by themselves will not function in the same way independent of each other. In other words, the whole is greater than the sum of its parts. It does not matter if it’s okay, that’s exactly what people did.Once the power of bitcoin became apparent, we began to see article after article touting the “real innovation” behind bitcoin. Respectable and well established companies have started to develop blockchain solutions to their problems.
There are now hundreds of blockchain startups. Problems related to back-end services for large institutions, digital identity, asset transfer, escrow and logistics are all addressed by blockchain solutions. Even pork tracking along a chain of blocks has been proposed. These companies are doing a really innovative job.
However, for many observers, the term “blockchain” is still conceptually associated with bitcoin. Thus, if a company describes an innovation that exploits a type of blockchain, it must distinguish it from bitcoin and blockchain bitcoin. How do blockchain companies talk about what they do without referring to bitcoin or other blockchains? The solution is to talk about ledgers.The arrival of distributed ledger technologyA ledger can record transactions between multiple parties. The concept of ledger is a main building block of bitcoin and any blockchain. Ledgers also benefit from the fact that they are commonly seen as boring, reliable and reliable tools in an accountant’s toolbox, as opposed to the technological innovation that makes bitcoin possible.
The distributed ledger, a type of database, represents a revolution in the way information is collected and shared independently through a large network. Unlike traditional databases, distributed accounting books do not have a central administrator or centralized data storage.Distributed accounting technology, or DLT, refers to protocols that allow computers in different locations to update and validate asset transactions in a synchronized manner and also have the potential to speed transactions because they eliminate the need for central authority or intermediary.The nodes of the network process and verify each element, thus generating a record of each element and then compare its results with the results of the rest of the nodes. The records are only stored in the book once most of the nodes reach a consensus.A chain of blocks is located under a distributed ledger and acts as a way to sort and validate transactions in the general ledger. While a blockchain automatically produces a new “block” after certain predetermined criteria are met, a distributed ledger only checks a transaction once it is sent, instead of ejecting the empty blocks. A blockchain is a way to implement a distributed ledger, but not all distributed ledgers necessarily use blockchains.
Distributed accounting technology is a truly revolutionary development. These account books are used by organizations (for example, supermarket chains) that have branches or offices in a specific country or in several countries. By eliminating the intermediary of transactions, companies can reduce errors, fraud and transaction costs while increasing efficiency.Similar account books are used by organizations (for example, supermarket chains) that have branches or offices in a given country or in several countries. By eliminating the intermediary of transactions, companies can reduce errors, fraud and transaction costs while increasing efficiency.Today, with innovation, the information stored on computers is moving towards much higher forms – which is cryptographically secured, fast and decentralized. DLt is here to stay.