If you are unfamiliar with the term “blockchain”, here’s a quick definition. Blockchain is a public distributed ledger maintained by network nodes that are connected to each other. It is a public ledger that people can view, but it’s not like a book where you can go and read it at any time. It goes back approximately four years, or thereabouts, which is how long it takes for the ledger to grow.
So what is this new type of technology that’s growing in popularity these days?
The short answer is that the ledger is called the distributed ledger technology because it works like a computer network, but instead of using hard drives or other mediums of storage like traditional file servers, it works on the grounds of cryptography and smart contracts. In simple terms, you have a group of people who agree to work together on a common project, and when they perform their task, they complete the work in a precise and timely manner. There are three distinct features of the new type of ledger we’re talking about, which are called the ethereal network, the bitcoin protocol, and the etherchain technology.
The biggest feature of the latest technology, which is known as the Ethereum network, is called the Proof Of Validity. This is where all transactions are governed by a certain set of rules. Transactions are validated against specific data sets and all other aspects of the ledger are enforced to make sure that the validity of the transaction is indeed factored into the ledger itself. The entire point behind the use of this so-called proof of validity is to prevent fraudulent transactions from taking place and to ensure that the network is free from outside influences.
The second feature we are going to take a look at is called the Distributed Ledger Technology, or DHT.
Basically, DHT is an algorithm that prevents certain transactions from happening in the network. If a transaction tries to go through, it will be forced to pass through a series of different stages until it reaches the verification stage, where it will be either confirmed or denied. During the verification stage, if the transaction cannot be verified, it is immediately banned and the money will not be moved until a retransmitter is added onto the network.
The last feature we are going to look at is known as the Bitcoin protocol.
Unlike the previous networks mentioned, this is actually the original and most popular form of distributed ledger technology that people today use. It was initially developed as an alternative to the national currencies of various countries, which is why many people refer to it as the “blockchain”. Basically, when a particular transaction is made, a specific amount of money will change hands. Unlike the previous networks we have looked at, this one actually passes several valid processes before being accepted as a completed transaction.
Using the services of a good digital agency is essential for anyone who wishes to get into the world of smart contracts and distributed ledger technology. A good agency can help you set up a business and handle all of the necessary interactions between your clients, customers, suppliers and employees in a timely manner. By working with an experienced digital agency, you can ensure that your company is well on its way towards establishing a strong public reputation and a solid supply chain management system.
