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Still Wondering What Distributed Ledger Means in Blockchain?

4 months ago

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Dear MCS traders, have you heard of 'distributed ledger' before? Understanding cryptocurrency's blockchain technology backbone, distributed ledger, is realizing cryptocurrency's intangible value.

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Blockchain's Core Technology - Distributed Ledger

Distributed ledger (public ledger, or distributed ledger technology / DLT) is an agreed plan of replicated, shared, and synchronized digital. The data here physically covers different sites, countries, or organizations, meaning it can function even without centralized operators or data storage. The key to distributed ledger is that users need peer-to-peer networks and there definitely needs to be algorithm consensus for duplicated data between the nodes

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Source : Shutterstock

Centralization? Decentralization?

For simplicity's sake, it'd make more sense to consider centralized ledger as a bank. Banks store sensitive data including customers' personal as well as transaction information, building up a massive amount of data every millisecond. In the case of a bank, it manages data by saving these pieces of information on a centralized database, which we call centralized ledger.

MCS traders should be very well aware of a decentralized bank. Am I right? As for decentralized ledger, you could think about blockchain. In the case of a bank, the excessive amount of data is organized at a centralized database, whereas, blockchain's distributed ledger receives distributed management due to numerous blockchain network stakeholders, and additional data or data updates are permitted solely through stakeholders' agreement.

Centralized ledger and distributed ledger each has its own pros and cons, which can vary according to the industry type and the environment, making it difficult to state which is better than the other.

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Source : Shutterstock

A Case Example of Blockchain's DLT Application

Blockchain is an example of DLT. Blockchain is based off P2P network with its basic structure calling for sequential connection of Blocks. Cryptocurrency Bitcoin network, which uses blockchain technology, forms a single block when nodes (network stakeholders) trade and confirm transaction information with each other for a certain period (around 10 minutes) and agree upon the transactions. The newly formed block connects to the previous blockchain and creates a copied version to be dispersed and saved to the Bitcoin network.

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Source : Shutterstock

Pros of Blockchain's DLT

When DLT is put to use it is cost-efficient because it needs not database operation and management systems like a bank, where it is strongly required for the sake of centralized server's off-the-books tradings. Simultaneously, financial transaction safety is reinforced as hacking becomes more task-heavy with all the dispersed data. Due to data being saved and dispersed with various network stakeholders, forgery is not even a possibility, and therefore providing stronger data reliability.

Chinese News Outlets Adopting Blockchain Technology

On May 20, according to China Email, 12 representative news media from different province areas and local governments in Mainland China are planning to form an alliance called “The National Department of Blockchain News Editing” to create a blockchain-powered news editing department. Hubei Broadcasting Network will be in lead with participation from Beijing Times, The Paper, Guizhou Daily Tianyamn News, and Yunbao News.

Pros  of Blockchain-Based News Broadcasting

Blockchain will record information such as news coverage producer, project lead, news article's original author, allowing news outlets to share news with one another at all times. Original news writers will be credited and provided a bigger say in the article as the blockchain technology records information about the first writer. Consequently, freedom of the press is guaranteed with strong rights protection.

Duration of Actual Blockchain Technology Service Much Needed

According to Wu Tong, deputy director of the CECBC Blockchain Committee of the Chinese Ministry of Commerce, the reform they seek to make through the news department is governed by specific precepts. He continues to say that the actual technology implementation will follow after running test rounds, leaving the assumption that it may take some time.

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Published 4 months ago