Since the anonymous release of the first Distributed Ledger Technology (DLT) concept in 2008, epitomized by Bitcoin, DLTs have evolved from a niche playground to transformative tools impacting diverse industries. This article navigates through the basics and advanced functionalities of DLTs.

 

DLT Basics: Blockchain and DAG

 

Blockchain: Originating with Bitcoin, blockchain DLTs create a linear chain of blocks for secure and unchangeable data storage. Each block contains transactions and a hash, validated by miners and nodes.

 

DAG (Directed Acyclic Graph): In DAG DLTs like IOTA's Tangle, transactions occur in parallel, speeding up confirmation. DAG is resource-efficient, suitable for micro devices.

 

Network Components: Nodes, Miners, and Clients

 

Nodes: Servers replicating data ensure DLT integrity and availability. While one node can operate a DLT, networks typically have numerous nodes.

 

Miners: Common in blockchain DLTs, miners validate transactions through cryptographic puzzles. The first miner to validate adds a block to the chain.

 

Clients: Wallets and Data Transactions

 

Wallets: Authenticate users for transactions and data interactions in DLTs, similar to a banking account.

 

Additional Features & Use Cases

 

Smart Contracts: Automated contracts trigger actions based on preset conditions, facilitating responses to real-world data.

 

Digital Twins: Real-world assets get digital twins, unique identifiers connecting digital information. Decentralized identifiers offer a standardized framework.

 

Asset Tokenization: DLTs digitize assets, distributing their value across tokens. For instance, apartment shares are sold as tokens, allowing decentralized investments.

 

Digital Data Marketplaces: Devices sell data on DLT-based platforms. For instance, a 5G antenna provides location data, influencing dynamic pricing for advertisements.

 

Digital Supply Chain Management: DLTs enhance transparency in supply chains, allowing consumers to trace product details through QR codes.

 

E-Voting: DLTs secure electronic voting, providing unique tokens for verifiable and transparent elections.

 

DLTs, from Bitcoin's origin, have grown into versatile tools reshaping industries with applications ranging from finance to supply chain management.

 

Links

https://www.bosch.com/stories/blockchain-technology-explained/

https://en.wikipedia.org/wiki/Smart_contract

https://www.investopedia.com/terms/b/bitcoin-mining.asp

https://www.bdli.de/innovation-der-woche/corona-check-blockchain

https://iottechnews.com/news/2021/jan/11/frankfurt-airport-using-iota-verify-covid-19-test-results/

https://www.etogruppe.com/en/news/news-from-eto/eto-gruppe-develops-traffic-infrastructure-sensors-funded-by-german-federal-ministry-of-transportation-and-digital- infrastructure-bmvi-within-project-alfried.html