Distributed Ledger Technology Vs Blockchain Technology

TheMerkle Blockchain DLTPeople often think of blockchain technology and distributed ledger technology as one and the same. Interestingly enough, that is not the case, even though it is not hard to see why some people would think along those lines. These terms have become entwined over the past few years, although it is important to distinguish the two from one another. Distributed Ledger Technology It is difficult to come across a unified explanation of how one should look at the concept of distributed ledger technology. A distributed ledger is a type of database spread across multiple sites, regions, or participants. As one

TheMerkle Blockchain DLT

People often think of blockchain technology and distributed ledger technology as one and the same. Interestingly enough, that is not the case, even though it is not hard to see why some people would think along those lines. These terms have become entwined over the past few years, although it is important to distinguish the two from one another.

Distributed Ledger Technology

It is difficult to come across a unified explanation of how one should look at the concept of distributed ledger technology. A distributed ledger is a type of database spread across multiple sites, regions, or participants. As one would expect, a distributed ledger has to be decentralized, otherwise it would resemble a centralized database like most companies use today. Removing the intermediary party from the equation is what makes the concept of distributed ledger technology so appealing.

Moreover, enterprises use distributed ledger technology to process, validate or authenticate transactions or other types of data exchanges. Records are stored in the ledger once consensus is achieved by the majority of parties. Every record stored in the distributed ledger is timestamped and has its very own cryptographic signature.

All of the participants on the distributed ledger can view all of the records in question. The technology provides a verifiable and auditable history of all information stored on that particular dataset. Distributed ledger technology will often to be referred to as DLT in financial and government circles.

Blockchain

On paper, the entire description of a distributed ledger sounds exactly like what most people think of when they envision a blockchain. However, the blockchain is just one particular type of distributed ledger. Most people know it as the technology powering bitcoin, Ethereum, and other popular cryptocurrencies. The name blockchain also refers to how “blocks” are added to the chain, which contains transaction records.

To make the chaining of blocks possible, the blockchain uses a cryptographic signature, known as a hash. In this sense, it is certainly possible to use a blockchain as a ledger, which can be shared with anyone and everyone. In the case of cryptocurrencies, this can be achieved by the other parties looking up blockchain information in real-time and even without installing specific software to do so.

What makes blockchains so intriguing is how they are so much more than just a simple data structure. It is possible to use a blockchain to determine rules for a transaction or even to create a smart contract. Moreover, a blockchain is a sequence of blocks, but distributed ledgers do not require such a chain. Furthermore, distributed ledgers do not require proof of work and offer Рtheoretically Рbetter scaling options. Some implementations are capable of combining both a distributed ledger and blockchain, albeit this does not necessarily apply to every project focusing on either of these technologies.

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5 Companies Focusing on Both Bitcoin and Ethereum Blockchain Development

TheMerkle Blockchain Bitcoin EthereumCompanies and entrepreneurs all over the world are looking at blockchain technology to create new business models. Some of these projects rely on the bitcoin blockchain, whereas others seemingly favor Ethereum. Both distributed ledgers offer quite a few advantages. As a result, various companies and investors are keeping tabs on both horses in the race. 5. Circle Ever since Circle started moving away from bitcoin, it was only a matter of time until the company unveiled their new plans. While Circle still uses bitcoin as a “rail” to complete global payments quickly, the team is also working on Ethereum applications.

TheMerkle Blockchain Bitcoin Ethereum

Companies and entrepreneurs all over the world are looking at blockchain technology to create new business models. Some of these projects rely on the bitcoin blockchain, whereas others seemingly favor Ethereum. Both distributed ledgers offer quite a few advantages. As a result, various companies and investors are keeping tabs on both horses in the race.

5. Circle

Ever since Circle started moving away from bitcoin, it was only a matter of time until the company unveiled their new plans. While Circle still uses bitcoin as a “rail” to complete global payments quickly, the team is also working on Ethereum applications. In fact, the company is using Ethereum’s blockchain for their “Spark” venture, as Ethereum’s ledger is the more mature and practical solution. An intriguing decision, although it is worth noting Spark will be interoperable with other blockchains.

4. Brave

The Brave browser has been well-received by the cryptocurrency community. Its ability to change the ad-viewing experience while surfing the web will have a big impact. Just yesterday, Brave announced they will provide users with an incentive. In fact, the Brave team wants to pay browser users to turn ads back on. While the browser has a bitcoin payment solution to let browser users tip their favorite content creators, this new incentive will see things done differently.

A digital token – called Basic Attention Token – will be released later this year. The vast majority of these coins will be sold to investors during an ICO. This new token is Ethereum-based and plays a key role in this new digital advertising platform. The source code for this new platform will be made open source on GitHub later this year.

3. Storj

Even though the Storj project was designed to be based on the bitcoin blockchain from day one, it appears the team has changed their mind. In a new announcement, the company explained they are bringing the  Counterparty-based Storj token Рknown as SJCX Рover to the Ethereum blockchain. The reason for this change is not difficult to find: mounting bitcoin transaction fees, delays, and the lack of development provided by the Counterparty platform. Another notch in the belt for Ethereum, that much is certain.

2. Factom

The Factom project is quite an intriguing one. The company anchors sensitive data into the bitcoin blockchain, although they are anchoring into Ethereum as well. This dual-pronged approach will guarantee information can be kept safe and secure at all times. Moreover, this goes to show both blockchains have their role to play in the future of distributed ledger-based products and services.

1. Blockchain Capital

Even though Blockchain Capital is not actively developing applications and projects themselves, they are a key investor in many blockchain-based projects. Blockchain Capital has pumped millions of dollars into bitcoin blockchain-based projects, yet the focus has been divided as of late. The company has become very serious about Ethereum, and they started to deploy half of their fund toward early-stage Ethereum-oriented investments.

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