At the time being all the computing services that we are using on day to day basis are centralized. Therefore this caused a stir and raised some questions regarding the security and control of data. What we are hoping for in the future is bigger security of the data and shift of control from the companies to the users. Blockchain is on the good way to introduce the decentralized technologies in this direction. Read more in the article below.

We can find central databases everywhere. We might not be aware of it, but we apply these databases on a daily basis when we check our emails, send messages via social networks, or pay for the bills on electronic way.

However, the ongoing system faces with a few challenges.

*🔓 Stability – Unfortunately we have all been witnesses to what happens when they hack a centralized database. The information are exposed to the public eye, all at once.

💵 Expenses – The development of a centralized system costs quite a lot and the organization which is interested in building one, is required to prove that it has the necessary capacity for running the system smoothly.

📊 Your information – In this type of systems the information that you provided belong to the system or the network, which take advantage of the data and monetize them for their benefit.

🌫️ Transparency – There is no certain info about who, how and for which purposes the information is used nowadays. We know part but not the whole story, that can be changed by the next generation of Internet or the Decentralized Internet.

What is the Technology of a Distributed Ledger?

It is abbreviation where D equals distributed, L is for Ledger and T for technology. A ledger in this context represents a digital database of all transactions.

What makes DLT different from other databases that we mentioned is the distribution of the data on multiple locations. The name actually stands for many technologies that apply this system among which here we highlight some popular examples as follows:

💰 CryptoCurrency – The two most famous examples of this are Bitcoin and Ethereum and one of the major use is to store the files of money transactions.

🔗Blockchain – Although there are other examples of DLT the most popular one is Blockchain. It is a decentralized system that is applied in the Bitcoin net, to keep records of the transactions.

💻 Git – Git is worldwide famous and well-known especially with developers who use it to deal with various code versions that they are working on. It basically is software for control of distributed sources.

Three keywords that need to be explained

In this context, we constantly come across three significant words that many people confuse so we decided to make a clear distinction between them:

Centralised – The information is saved in a single central location, regarding the single entity controlling unit.

Decentralised – The information is saved within lots of locations.

Distributed – The devices are linked one to another in a network and communicate among each other the same as in computing.

The term centralised is an antonym of decentralised whereas distributed although synonym has a slightly different meaning. An example of a distributed and centralized system is DropBox while distributed but decentralized is FileCoin.

Most of the time when we refer to DLT we understand at the same time a distributed and decentralized system.

One step forward

The Technology of Distributed Ledger designs a distributed and decentralized Internet model.

In such systems instead of the companies such as Google that usually possess one big database on the centralized systems, here we have storing files at the same time on lots of digitally linked devices.

In decentralized systems, as opposed to centralized where the companies take and manage the value alone, the benefits are shared throughout users’ network.

When this technology of Distributed Ledger starts to develop successfully we can expect the following:

👐 Bigger accessibility

👀 Much bigger  transparency

🏭 Efficiency on a higher level

💸Higher user reward

🚀New opportunities

What comes next 🔮

This is just the start. Very similar to the very beginnings of the Internet, DLT stands against many challenges, and mainly in the field of scaling.

DLT is still unknown field and there are many possibilities for exploring new applications. It is all moving very fast so we expect and believe that the future belongs to the distributed technology.