- July 23, 2020
- Posted by: Anita Iyer
- Category: Blog
Distributed ledger technology known as (DLT) is a system that duplicates, secures, and shares data on a decentralized or centralized network. DLT is also designed to remove corruption by replacing a single point of failure with a distributed network of nodes or devices that work together to verify transaction, data, or any functionality the distributed ledger is utilized for. There are several types of distributed ledger some are private and some are public, mostly are based on “Blockchain Technology” yet other technologies do exist such as “The Tangle” by IOTA. We will be introducing the big players in the world of distributed ledger and how their technology sets them apart.
Developed by Vitalik Buterin in 2014, The Ethereum blockchain is probably the most talked about technology in the cryptosphere, and is also ranked second by market capitalisation. Ethereum is a distributed public blockchain network that runs a programming code known as Smart Contracts which is intended to automatically execute, control or document legally relevant events and actions according to the terms set agreed by Tokens and users, this allows direct agreements without third-party interference or central authorities. Because smart contracts run on the blockchain, they run exactly as programmed without any possibility of tampering and hacking. iOWN Token is built on Ethereum’s blockchain technology as is provides the best Ecosystem for iOWN to function and thrive as a crowd-investment platform.
Gaining over 138 billion-dollar marketcap in 2018, Ripple is both a peer-to-peer platform and a currency. One of the early comers in the crypto space founded in 2012, ripple doesn’t use blockchain but uses a distributed consensus ledger utilizing a network of validating servers and crypto tokens called XRP, the currency is pre-mined by Ripple labs making the network centralized rather than the majority of crypto’s being decentralised, yet some claim it is somehow decentralised…this is still a debate between many crypto holders. The Ripple network has allowed for partnerships with major financial institutions and banks such as Standard Chartered and American Express adopting RippleNet which is a network of payment-providers, money services businesses and banks that use solutions developed by Ripple to provide a frictionless experience to send money globally in a fast and reliable manner. As most of have probably experienced delay of a few days transferring money overseas with fees ranging anywhere from $10 – $50, the ripple network can d it in a few seconds for a tiny fee.
Ripple Unique Features: A centralised network used for payment and consensus algorithm is XRP Ledger Consensus Protocol.
NEO was founded in 2014 and is a blockchain based platform categorizing itself as an open network for the smart economy and is a smart contract platform that is similar to Ethereum. NEO’s consensus works on Proof-of-Stake and uses the GAS token to pay for transactions, and as a block reward. Whenever a node discovers a new block, all NEO holders receive a share of GAS tokens, distributed automatically and equally. The more NEO you stake the larger share of GAS you will be rewarded. Powered by the Delegated Byzantine Fault Tolerance mechanism, NEO is known for it’s speed of transactions and can carry 1000 transactions per second and has many dAPPs built on its technology, but Ethereum takes the win here as it has way more dApps developed on the Ethereum blockchain.
NEO Unique Features: A decentralized blockchain platform used in the Smart Economy industry and the Consensus Algorithm is Proof of Stake using the Delegated Byzantine Fault Tolerance mechanism.
Founded in 2015, IOTA is an open-source and the first distributed ledger built for the “Internet of things” with tamper proof data, free micro transactions and enabling economic relationships between machines and bridging the human and machine economies. Unlike most distributed ledger platforms, IOTA does this through the use of its new and innovative protocol known as the Tangle, The Direct Acyclic Graph (DAG) employed by the Tangle differs from the blockchain in a few key ways. The Tangle uses a ledger for storing transactions in the Tangle protocol. These transactions are connected via, what are called, edges. The edges serve as a representation of validated transactions on the Tangle network. The rule is, a new transaction that occurs on the network must validate at least two previous transactions before it itself can become validated…some people have named this a “Mesh”, just like “Blockchain” is names after blocks that are linked with one another. IOTA feeless concept has got the coin to be ranked in the top 20 in the crypto market cap in the past 3 years, even reaching the top 6 at one stage. IOTA lives by their quote – “No blocks. No Miners. When you send an IOTA transaction you validate two other transactions. This allows IOTA to overcome the cost and scalability limitations of blockchain”.
IOTA Unique Features: Uses the “Tangle” technology rather than Blockchain, used in cross-industry and the Consensus Algorithm is Shimmer.
To conclude, Distributed ledger technology is a digital system for recording and storing transactions along with details such as time, date and sender/receiver addresses that are recorded in several places at the same time, they cannot be manipulated or tampered with. Unlike traditional databases that have central data point that could be attacked and tampered with. There are multiple techs that support the distributed ledger concept like Blockchain, that are designed to function differently from platform to platform, some focus on payments and some focus more on Smart Contracts and storage of information. Nevertheless, other technologies such as the Tangle, work differently yet provide the same end result for distributed ledger requirements. This allows businesses to jump aboard the distributed ledger technology with several approaches to choose from that fits their business activities and adopt what we call the Internet 2.0 era.
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