Distributed Ledger Technology is used to record, share and synchronize digital assets in their respective electronic ledgers, instead of keeping the data centralized. The digital asset could be anything – information or transaction.
DLT is slowly being regarded as one of the greatest inventions of the decade that could potentially fundamentally change the financial sector, making it more efficient, resilient and reliable. It is likely to transform many other sectors as well, like manufacturing, supply chain, government, law, agriculture, human resources, management systems, and clean energy.
Decentralization of data and data processing via use of distributed ledger technology (such as Blockchain) is being regarded as a profoundly good thing. It is enabling users to:
- Create a world where every consumer is empowered
- Avoid the risk of data residing in a central data base being hacked or corrupted
- Eliminate redundant intermediaries, i.e. middle men
- Enable lesser regulations to be applied.
Blockchain saves every information exchange in the individual computer as a block, and every other information gets saved as a block as well and stacked upon the previous block. Thus, with the creation of a chain of these blocks, it is not possible to change or alter the data at all. The data gets saved cryptographically in a secure, transparent, and immutable, form, which is easy to access in a time saving manner.
Blockchain and Distributed Ledger Technology have seen vast development and growth in the last decade, which has been enabled through DLT mobile app development. However, as alluring as the technology does appear, there are certain myths surrounding it that make everyone contemplate the wide acceptance of this technology. Let’s take a look at some of the common misconceptions that persist around blockchain and separate the myths from the realities.
Myth 1: DLT Application is Only Limited to the Fintech Sector
It is true that DLT-enabled blockchain started as a technology to support cryptocurrencies and was mainly used in the finance sector initially to manage financial transactions, but now its use has been extended to various other sectors as well.
DLT mobile app development is able to improve transparency around any type of transaction– whether it is verification of education degree of a job prospect or the confirmation of the receipt of a product moving through a supply chain. A DLT blockchain app developer can create an app for the human resources division of a company to verify credentials of a job applicant in which his entire work and education history can be accessed through a click of a button.
Myth 2: Bitcoin is Blockchain and Blockchain is Bitcoin
This is one of the most common misconceptions regarding blockchain. Blockchain serves as the underlying technology that is used by Bitcoin and other cryptocurrencies. After the huge success of Bitcoin, many other companies developed their own cryptocurrencies and hired cryptocurrency app development services to enter this brand new and extremely well-flourishing market. Distributed Ledger Technology (DLT) has many other potential uses across all enterprise activities, including insurance, healthcare, supply chain, and identity verification.
Myth 3: DLT App Development is done to Store Information on the Cloud
Distributed Ledger Technology comes with append only properties. Once the information is entered into the system, it becomes immutable. It can under no circumstances be deleted. The files in the system keep on growing and get replicated in the P2P network. Although the system developed by a DLT blockchain app developer is a place where information gets stored, it doesn’t allow storage of any physical information like an image.
Myth 4: DLT is a Single Entity
It is a popular belief that DLT and blockchain is a single entity. It has its own independent existence like the internet. However, the truth is that there are a number of blockchains that are created for different purposes. Blockchains are a growing list of records that are linked together using cryptography. Each block or ledger contains a specific type of information that is exchanged between two parties in a permanent, verifiable, and efficient manner.
Myth 5: Distributed Ledger Technology is Just another Term for Blockchain Technology
Blockchain is a type of distributed ledger technology, but not all distributed ledgers are effectively blockchains. Also, not every company that provides a distributed ledger solution is actually working on a blockchain, even if they may use the term for marketing purposes. A DLT app development company might not house a DLT blockchain app developer who can effectively create a solution for your company.
As blockchain is still a relatively new technology, several misconceptions may lead companies to implement blockchain-based solutions where they are not needed. Over the years, businesses have been carried away by the blockchain and Distributed Ledger Technology hype and used the technology where a traditional database management might have been superior. It is, therefore, important to get it right and have a fair idea from the very start to understand what the technology does and does not do.
Cryptocurrency app development service is being used by companies to create a flexible, fast, and scalable system to give them enterprise support.A DLT blockchain app developer can change your business in more ways than one and take it forward tobecome more futuristic. Blockchain continues to evolve and has made it possible for businesses to formulate a new ecosystem of work. Learn more about the technology and how a DLT blockchain app developer can add value to your business plans before diving into the field.