What to ledger – part 1: distributed ledger vs.
article technology Blockchain have:
distributed ledger technology, Blockchain, tangle and Hashgraph – tag, which always fall, however not always easy to distinguish. We explain the fundamental differences in our 2-piece.
First and foremost, it was noted that it should go here by no means therefore to clarify the relevant technical details in detail – for this you need to write books . In our 2-piece “What ledger” concerns, to provide a classification of terms distributed ledger technology, Blockchain, tangle and Hashgraph. This is the purpose of helping newcomers to first understand of these technologies.
Distributed ledger technology – the basic Kontenbuch
the term distributed ledger technology – short DLT – often with translated “distributed Kontenbuch”. This stems from the fact that the DLT is a network where the data distributed (distributed) are organized. Thus is the DLT in contrast to ordinary databases where data on central servers is stored, administered by an (administrative) authority.
Ultimately, the read and write permissions of the participants of the network are equally distributed. Each accredited user can access the data so to speak. What initially makes the DLT, is the lack of an instance or authority that manages the data – all this happens automatically, the technology takes on the role of the Administration: it is distributed so distributed and decentralized.
For this reason, the participants in the network (servers or nodes) must find a consensus, as the data or arrange the transfer of data. The participants of the network via different consensus to agree about the arrangement. Ultimately, the DLT so is a genus of databases, which automatically regulates details of data and their transfer and so provides a distributed, common ownership of all data.
Finally, three varieties of DLT can be distinguished. So distinction between private permissioned or and public DLT. Private access to individual participants is limited, at DLT with access limitations (permissioned) this limit can be extended, the public is – who would have thought – public. Here comes the (Bitcoin) Blockchain in the game.
The distributed ledger technology is a general term for Kontenbücher or databases with not only local, but distributed structure. The Blockchain, the tangle or Hashgraph are three types of DLT.
Blockchain – a chain of blocks of data
as the name says, can you imagine the Blockchain as a chain (chain) of blocks (block). The territorial institution is in a central data base a whereas it is the decentralized Blockchain for multiple participants.
The distributed data are collected in blocks, arranged in chronological order “in a row”. Here, it should be remembered that it is a depiction that is owed to the Declaration, there no actual tangible chains in cyberspace flying around. Instead, it creates a concatenated list of data blocks which are interconnected via specific checksum, also known as the hash.
Hashes play a central role to the formation of the Blockchain. You are in each new block and transport information of previous blocks further. The Blockchain is thus tamper-resistant and at the same time, the transactions remain verifiable. The content of transactions is less important, it is important, when and how transactions – took place and whether these are found to be correct. So ultimately technically manufactured confidence is the basis of the Blockchain.
The individual blocks contain data about transactions. They are stored within the block itself in data structures known as Merkle trees. The information store the participants in hash. New information is added, the Blockchain creates new blocks. That new information can be added to the chain or the blocks, use the Blockchains consensus process like for example proof of work or proof of stakeholders .
On the Bitcoin Blockchain, the proof of work procedure is applied. Compete in various miner to the correct transaction – the winners get Bitcoin. Ultimately, the transaction costs are an incentive for the miner, to verify the transactions and to dig more Bitcoin.
Overall, not only Kryptowährungen like Bitcoin can be managed with the Blockchain technology. Rather, the framework provides a way to coordinate all data flows that need review. Applications in the health sector, in elections and of course trade in goods are possible.
the distributed ledger technology is a distributed Kontenbuch. Thus, it represents the technological framework for the Blockchain. The Blockchain in turn is a specified distributed ledger technology. The Blockchain technology makes possible the automatic checking and management of transactions without the need for a central instance. In the second part continues with the Blockchain alternatives tangle and Hashgraph.