Distributed ledger

A distributed ledger (also called shared ledger) is a consensus of replicated, shared, and synchronized digital data geographically spread across multiple sites, countries, or institutions.[1] There is no central administrator or centralised data storage.[2]

A peer-to-peer network is required as well as consensus algorithms to ensure replication across nodes is undertaken.[2] One distributed ledger design is through implementation of a public or private blockchain system.[3] But all distributed ledgers do not have to necessarily employ a chain of blocks to successfully provide secure and valid achievement of distributed consensus, a Blockchain is only one type of data structure considered to be a distributed ledger.[4]

In 2016, numerous banks trialed distributed ledgers for international payments.[5]

Applications

Incumbent banks are investing heavily in distributed ledgers as a cost-saving measure and a way to reduce operational risks.[2] The future use of distributed ledgers is expected to monetize the Internet of Things in a programmable economy.[6]

Everledger is used to track diamonds by recording numerous unique data points.[6]

See also

References

  1. ↑ Distributed Ledger Technology: beyond block chain (PDF) (Report). UK Government, Office for Science. January 2016. Retrieved 29 August 2016.
  2. 1 2 3 Scardovi, Claudio (2016). Restructuring and Innovation in Banking. Springer. p. 36. ISBN 9783319402048. Retrieved 21 November 2016.
  3. ↑ "Fintech Storm brings to India a delegation of International leaders in Blockchain technology and cryptocurrencies". IT Business News. 2016-11-14. Retrieved 2016-11-15.
  4. ↑ Blockchain Technology Explained. Retrieved on 21 November 2016
  5. ↑ "Central banks look to the future of money with blockchain technology trial". Australian Financial Review. Fairfax Media Publications. 21 November 2016. Retrieved 7 December 2016.
  6. 1 2 "The CIO’s Guide to Blockchain". Smarter with Gartner. Gartner, Inc. 29 June 2016. Retrieved 4 December 2016.
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