Distributed ledger technology

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Assalamualaikum steemians

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How are you ?Hope so everyone would be safe and sound just like me as I am also safe Alhamdulillah....

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Distributed ledger technology is one of the most interesting topic to share.I would like to tell about its basics along with practical examples and it's working so let me elaborate it in detail.

Source

Distributed Ledger Technology is a sort of decentralized database which keep in records all transactions and data across a network of computers in most safe and secure manner. It is used for enabling multiple parties for being agree at single, immutable record of events without requirements of any intermediate entities.

Practical Examples

1. Blockchain:

Blockchain is most crucial and well-known application of distributed ledger technology that powers different cryptocurrencies such as Bitcoin and Ethereum. Blockchain is decentralized ledger which is used for recording transactions and for transfers of different assets.

2. Supply Chain Management:

Maersk and IBM are using decentralized ledger technology for tracking different levels of inventory in real-time for minimizing frauds and for enhancing efficiency.

3. Smart Contracts:

There are multiple insurance companies including AXA as an example which is using decentralized ledger technology for executing smart contracts,for automating claiming of processing and payouts.

4. Identity Verification:

Estonia is again using decentralized ledger technology for securing digital identity verification and it is used to enable citizens for accessing healthcare and financial services.

5. Voting Systems:

There is a decentralized ledger technology based voting systems used for ensuring secure, safe, and auditable elections which are used later in different countries such as India and US.

Working of distributed ledger technology

1. Network: First of all there is a network of computers is established and each network would be with a copy of the ledger.

2. Transactions: After establishment of computer network new transactions would broadcast to network.

Source

1. Verification: After transactions broadcasting nodes would verify transactions by the usage of complex algorithms.

2. Consensus: After verification of transactions consensus would show it's agreement on the verified transactions and it would create a new block.

3. Chain: After block creation chain would be made and every new block would be linked to previous one and it would create an immutable ledger.

If I conclude my topic then it was very easy to understand and hopeful you all had previously knowledge about distributed ledger technology and now I have explained that how in blockchain in supply chain management,in smart contracts in identity verification distributed technology have its role and then I have explained some of its easy working steps and now hopefully the topic is more clear to all of you.

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Thanks

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