Blockchain is revamping various industrial frameworks across the globe. At first, its applications were only limited to operations revolving around the aspect of money, but now, people are starting to realize the true potential that it possesses. If used properly, it can revolutionize the way various industries work. What makes blockchain truly stand out among rest of the emerging technologies is its ability to be transparent owing to the employment of distributed ledger technology (DLT) at its core. But what exactly is DLT? Here’s everything you need to know and remember.
Almost all the conventional frameworks of operation that are employed on the internet and in the real world are largely centralized. Whether its social media or actual businesses, centralized frameworks are dominating everywhere as the control of the network is snatched up by a third party. For example, Facebook has large centralized data centers where records and personal information of the people are kept. These centralized honeypots are also more prone to hacking. A hack in one centralized data center can lead to damage of catastrophic magnitudes. Personal information of the users is of ultimate value to the hackers and this is what makes centralized framework vulnerable.
Besides, forgery is one thing that can be easily done in a centralized system. The third party in charge of handling operations has all the control of all the happenings of the network and manipulation can be done by the body in charge. DLT completely changes this scenario.
In a blockchain-based decentralized system, there is no central party in control. So the aspect of possible forgery by a party is completely taken out of the window. Secondly, the record of all the happenings of the network is not maintained by one node only, multiple nodes have it. Let’s just call this record a ledger. This ledger is kept by various parties agreeing on the credibility of the record, or in other words, the record is distributed and uniform, hence the name ‘Distributed Ledger Technology’.
DLT is an important aspect of blockchain and helps make sure that the record is immutable. Whenever someone tries to tamper with the record maintained on a blockchain network, other nodes immediately step in to nullify the effect because they also have the entire previous history of operations.
The record of transactions is maintained in blocks, and once a new block is added to the chain, it cannot be changed at all. Every block has a hash value associated with it which is determined by the data that is in the block, and the hash number of the previous block linked with it. In this way, if someone tries to change the data in a block, its hash is changed and as a result, this forgery is immediately detected by the network by the rest of the nodes, all because of the distributed nature.
All in all, DLT is just like the heart of a blockchain. It makes sure that the openness and transparency of the blockchain network are maintained. It also expands usage of blockchain besides tracking money. Owing to DLT, blockchain can be used to track any kind of assets, commodities etc. Blockchain finds its usage in healthcare, transport industry, logistics, sports, gaming and many more arenas owing to the distributed-ness and transparency that is granted to it by DLT. Now, it remains to be seen how many industries will blockchain influence overall with all the prospects that it provides.