A Distributed Ledger uses independent computers (referred to as nodes) to collect, record, share, track and synchronize inputted data.
LOL, No, a DLT is not a new fangled type of sandwich.
Distributed Ledger Technology (DLT)
The term itself is very self explanatory and put very simply below:
A Distributed Ledger uses independent computers (referred to as nodes) to collect, record, share, track and synchronize inputted data. So, DLT’s then CRSTS inputted data, if you’re super into acronyms.
In their current state, DLT’s are still very immature in their evolvement and their full potential has not been achieved because currently their primary task is being used to collect, record, share, track and synchronize tokens (cryptocurrencies ex. bitcoin).
The way I see DLT’s is they are a CarFax service but for everything else in the world. Think about what Carfax does for just a second, by reading the below description from their company website.
Carfax compiles a history report for a vehicle based on data it collects from U.S. motor vehicle agencies, police departments, fire departments, collision repair centers, auto auctioneers and other sources.
Future DLT’s will collect, record, share, track and synchronize inputted data on everything from a toothbrush to a home. Pretty much any physical or inanimate object will be be able to have a “cache of data” established on it.
For shits and grins, lets call this CarFax type of DLT a “DataCache”. Yes, that is right folks, I am right here and right now coining a new high-tech catch phrase. The term “data cache” is basically what a DLT provides, a cache of data about a physical or inanimate object.
How will information (data) be inputted into the “DataCache” of an object you say? The answer: RFID tags, Bar codes, QR Codes, GPS coordinates and manual human typed input. Just about anyway data can dreamed up to be inputted.
“DataCache” DLT’s are destined to be the decentralized databases of the (IoT) internet of things. Everything, in the very near future, will be connected to the internet and “DataCache” DLT’s will be the storage place where data collected from these devices will be stored.
Let’s use a vehicle (car) as an example: Every step of manufacturing, shipping, delivery, sale, repairs and movement of the car can all be inputted into that cars “DataCache”.
Ok, let’s use a house as an example. Once a “DataCache” is established on a home, inputted data of initial construction dates, loan and mortgage dates, sales of the home, deeds, repairs, room additions, roof leaks, faucet change outs, monthly electric cost, water bills, termite inspections and bug sprays can all be inputted either automatically or manually.
A manual entry example would be: the pest control person would scan a QR code printed on the pantry door of the house, which would send the information to the houses “DataCache” that he sprayed for bugs on that date. An automatic input example would be: the electric company automatically sends the monthly electric cost to the “DataCache” of the house each month.
Lets use a human in a “DataCache” example next. I know this will be a touchy subject because of privacy laws and people will simply not want to be tracked. But just think about the possibilities at least for second. A “DataCache” would be established at birth. Input examples could include, birth date, food intake, temperature, heart rate, blood type, steps taken each day and locations visited.
I know most of these inputted data points are not realistically going to happen because of privacy, but for example purposes, hopefully it gets my point across that “DataCache” types of DLT’s are the future of collecting, recording, sharing, tracking and synchronizing data on a object or thing.
Next, let’s use a restaurant in a “DataCache” example. A “DataCache” would be established upon the restaurant being built or opened. Inputted data could come from food temperatures, inventory, hours of operation, menu items, reviews and sales of each specific item. The “DataCache” information could be used then basically as a database and say tied into the restaurants website to display the collected inputs.
From a business perspective, I see “DataCache” DLT’s being built for each sector of business. For example one startup business model would built a “DataCache” DLT specifically for homes, another startup might build a “DataCache” for toothbrushes.
Can you see “DataCache” DLT’s being the next technological revolution?