Distributed ledgers are databases shared across multiple computers on a network. All participants in the network can verify the contents of the database, and all changes to the database are transparent and available to everyone.
The most well-known example of a distributed ledger is the blockchain, which is the underlying technology behind Bitcoin. However, there are many other types of distributed ledger technologies being developed, and each has its advantages and disadvantages.
To go deeper into DLT and blockchain differences, read this post.
Distributed Ledge Technology: Major Types
Following are the few significant types of distributed ledger technology:
Hahgraph
DLT Hashgraph is a distributed ledger technology (DLT) that uses a directed acyclic graph (DAG) data structure to achieve consensus. Hashgraph is a permissioned ledger, meaning that it requires participants to be known and authorized before they can take part in the network. The Hashgraph platform was created by Leemon Baird, the co-founder and CTO of Swirlds.
The key advantage of Hashgraph over other DLT platforms is its scalability. Processing thousands of transactions per second via Hashgraph is a better option than the work of other permissioned DLTs. Additionally, Hashgraph is much more energy-efficient than blockchains, as it doesn’t require miners to validate transactions.
The Hashgraph protocol is in its infancy and is not yet ready for production use. However, if it can live up to its potential, Hashgraph could be a major player in the DLT space.
DAG
The Directed Acyclic Graph (DAG) is a data structure that is used to represent a directed graph. The DAG is a directed graph with no cycles. The DAG is a directed graph with no cycles. And each node there has a unique identifier. The edges in the DAG are directed from the source node to the destination node. The DAG is used to represent a directed graph. The DAG is a directed graph with no cycles.
The Directed Acyclic Graph (DAG) is a data structure that is used to represent a directed graph. The DAG is a directed graph with no cycles. Each node in the DAG has a unique identifier. The edges in the DAG are directed from the source node to the destination node. The DAG is used to represent a directed graph. The DAG is a directed graph with no cycles.
Public Blockchains
Public blockchains are decentralized and allow anyone to participate. Private blockchains are permissioned and only allow certain individuals or organizations to access them. A hybrid blockchain combines public and private blockchains.
These are the most secure type of distributed ledger technology because they are decentralized and allow anyone to participate. Private blockchains are less safe because they are permissioned and only allow specific individuals or organizations to access them. Hybrid blockchains are the least secure type of distributed ledger technology because they combine public and private blockchains.
A public blockchain is one of the most popular types of distributed ledger technology. The most popular public blockchain is the Bitcoin blockchain. Other popular public blockchains include the Ethereum blockchain, the Litecoin blockchain, and the Bitcoin Cash blockchain.
Private Blockchains
Private blockchains are less popular than public blockchains because they are less secure. The most popular private blockchain is the Ripple blockchain. Other popular private blockchains include the Hyperledger Fabric blockchain, the Corda blockchain, and the Quorum blockchain.
Hybrid Blockchains
Hybrid blockchains are the least popular type of distributed ledger technology because they are a combination of both public and private blockchains. The most popular hybrid blockchain is the EOS blockchain. Other popular hybrid blockchains include the ICON blockchain and the Wanchain blockchain.
Even though distributed ledger technology is still in its infancy, no clear winner has emerged yet. Public blockchains are the most secure and popular type of distributed ledger technology, but private blockchains and hybrid blockchains have their own advantages and disadvantages.
Major Advantages
One of the main advantages of distributed ledger technology is that it is very secure, as all changes to the database are recorded and verified by the network. No one can fraudulently alter the data by modifying the network records.
Another advantage is that distributed ledgers are often faster and more efficient than traditional databases. There is no need for a central authority to verify and approve all changes.
There are also some disadvantages to distributed ledger technology. For example, it can be difficult to change the data once recorded on the ledger, which could be a problem if an error is made.
Overall, distributed ledger technology has the potential to revolutionize the way we store and share data. It is secure, efficient, and transparent and has the potential to significantly reduce the costs of doing business.
Bottom Line: The Future
The future of distributed ledger technology is uncertain. It is possible that one type of distributed ledger technology will emerge as the clear winner. Or, it is possible that all these types of DLT will coexist and be used for different purposes.
What is certain is that distributed ledger technology has the potential to revolutionize the way we do business. It has the potential to make transactions more transparent, more secure, and more efficient. It has the potential to create new economic opportunities and to make the world a fairer place. If you are in need of professional blockchain, smart contract, or DLT developers, contact my partners from this domain.
The possibilities of distributed ledger technology are so wide, that the technology is used in education and fintech, medicine and e-commerce, transport and logistics. With the introduction of private and public layers, it is possible to solve the most sophisticated issues in any industry.