What is DLT – Distributed Ledger Technology? by EditorMay 15, 2019Hashgraph 101 Introduction: Before the invention of the personal computer, few people had an idea what the potential of computer technology could be in the upcoming years. Even more so, when the world wide web debuted in the 1990’s, very few had even a clue what the global web could do in the coming decades. That critical moment of technological improvement is yet again apparent to many in the cryptocurrency ecosystem, where they believe that finance as well as many other business sectors will be systematically disrupted in a revolutionary way with distributed ledger technology (DLT). Proof-of-Work DLT: A decentralized network of computers means that no single computer is the center of attention or influence. Computers in a distributed system have to use some method to communicate the truth about some set of facts, such as account balances, and must use a consensus mechanism to agree on it. In the Bitcoin network, a Proof-of-Work (PoW) consensus protocol is used in a mesh of peer-to-peer computers to form a shared state, called the ‘blockchain”. In this network, the fastest computer able to solve a random puzzle first, is allowed to create the next block in the ‘blockchain’, which documents the next set of account changes of the network. In return, this individual computer host receives a reward in Bitcoins for supporting the network. Consensus, or the mutually-agreed upon data set, is created by this PoW mechanism and recorded in the blockchain. Proof-in-Stake DLT: In Proof-of-Stake (PoS) consensus, a majority of staked nodes must agree on the shared state of accounts in order to form universal agreement through some voting mechanism. In Hedera Hashgraph, the consensus mechanism is actually performed through Virtual Voting, which is the most efficient way that a network of computers could agree on a shared state of data. This is an unprecedented technological achievement in distributed databases, to the point that the Hashgraph network was awarded a patent for the breakthrough. Hashgraph is also dependent on a unique Gossip-about-Gossip protocol that assists in the consensus mechanism, while operating at maximal efficiency of bandwidth use. In total, Hashgraph’s consensus is both efficient and fast, while creating a mutually-agreed upon data set, called the ‘hashgraph’. Hashgraph is built on a different data structure than blockchain, called a DAG, or Directed Acyclic Graph. The “Hashgraph” is the equivalent of the ‘blockchain’ in Bitcoin. So, the two dominant forms of distributed ledger technologies (DLTs) are 1-blockchain and 2-DAGs. Central Database Technology: In order to understand how a group of computers can form a consensus, or universal agreement on a set of data, it is important to understand the nature of shared data. In a legacy, or traditional database system, user data is usually stored in a central place for quick and easy reference for maximal website performance. However, in the process of grouping user data on a single database, or ‘node’, a vulnerability is created that can easily become a target for hackers and personal data thieves. In the past few decades, some of the largest, most trusted public corporations have suffered massive data breaches by internet hackers, losing 100’s of millions of users’ personal data, including passwords, addresses and credit card information. The largest hack to date was clearly the Yahoo.com hack in 2013 that exposed the accounts of over 3 billion user accounts. This led to widespread personal data security fears in the internet age that has yet to be successfully countered with a secure solution. Link:https://www.csoonline.com/article/2130877/the-biggest-data-breaches-of-the-21st-century.html Distributed Ledger Technology: The appearance of the Bitcoin decentralized network in 2009 was in response to the global banking crisis that occurred in 2008 and altered the public’s opinion of trust in banks for generations. The Bitcoin network was a peer-to-peer computer network that operated pseudonymously, or namelessly, for years while creating a new kind of digital currency. The goal of the Bitcoin network was to create an ‘unhackable’ database of Bitcoin accounts that could never be censored or stopped by an authority in any country. The goal was also to allow for peers to exchange value over the internet in this secured platform. Bitcoin DLT: For the past 10 years, the Bitcoin network has proven that its PoW consensus is more worthy than all other centralized database servers that have been targeted by data breaches. Bitcoin to date in 2019 has not been hacked or even compromised in its ‘blockchain’ data structure. This form of data integrity and resilience is the true power of ‘democratic’ computer networks, where thousands of nodes contribute to the mesh of connected servers, and help validate the shared truth in a blockchain (DLT). Because Bitcoin consensus is dependent on a large number of computers, the strength and security are also dependent on how many good acting nodes there are. It would take more than 51% of the network to become malicious to stop or alter the blockchain. This difficulty keeps the Bitcoin network secure because of its ‘distributed’ or spread-out nature. Hashgraph DLT: The Hedera Hashgraph network is a 4th generation distributed ledger technology, that secures a layer of trust in the internet that has not been possible since the rise of Bitcoin. The Blockchain revolution has produced many prototypes of the future internet security layer, and it appears evident to some experts that the Hedera Hashgraph algorithm may be the first to gain mass mainstream adoption because of its improved performance specs, distributed governance model and fork-resistant technical and legal controls. Distributed Ledger Technology has been shown publicly to be resilient, resistant to attacks and data breaches better than traditional database designs. Massive personal data compromises at trusted companies like Yahoo.com, JPMorgan, Bank of America, and many more only reinforce the necessity for a ‘Trust Layer’ to the internet.Hedera Hashgraph is a 21st century DLT with the speed, scale and security necessary for global adoption. Additionally, Hashgraph technology is governed by a widely distributed network of Governance Controls, much like the democratic design of the U.S. Congress and the Visa Network. DLT’s like Bitcoin and Hashgraph have accelerated the natural evolution of the internet, by allowing new projects of human ingenuity that solve difficult problems with networks of people. The Distributed Ledger Tech in these cryptocurrencies will shape the entire digital landscape of the future due to its superior security features, privacy-enabling options, and full transparency of data. The future does look bright in this innovative emerging market of software technology, where massive personal data breaches and large financial hacks may no longer plague the public internet market. DLT is the next quantum leap towards a more safe and secured internet. Ħello Future. Get email alerts about breaking news effecting the HBAR price and Hedera Hashgraph HBAR coins. Please look for a confirmation email from [email protected] Success! Email Subscribe Submit a Comment Cancel replyYou must be logged in to post a comment.