What Are Other DLTs Apart From Blockchain
By Vinshu Gupta on ALTCOIN MAGAZINE
Digital Ledger Technology or DLT is a broad term that utilizes digital database technology and implements it in different ecosystems. In a DLT, there are various nodes on the network which use different agreement processes to reach a common conclusion.
Different DLT’s have different methods to arrive at a consensus, which brings us to the different types of DLT’s. Fundamentally, there are 5 types of DLT’s, each having its own unique features as listed below:
1. Blockchain
The most popular and simplest type of DLT is blockchain. In a blockchain, the blocks of data are connected through data identifiers that start with a hash.
The users initiate a transaction, which needs to be verified by the nodes on the network through a consensus mechanism. After being verified by the consensus mechanism, the data is readied to get stored in a block.
However, before storing the transaction, it is first assigned a data code; this data code also contains the information of the predecessor block. Thus, this process helps in maintaining the chain of blocks, containing data.
2. Hashgraph
The purpose of Hashgraphs and Blockchain is similar, i.e. — a peer-to-peer transparent monetary system which does not require a central regulatory authority. They do have some fundamental differences that distinguish them apart. The consensus mechanism in a hashgraph works via Virtual Voting and Gossip Techniques.
Thus, hashgraph has higher scalability and demands lower storage than Blockchain. In the hashgraph ledger, multiple transactions can be stored in a parallel stack within a single timestamp known as an “Event.”
3. Directed Acyclic Graph (DAG)
Directed Acyclic Graph or (DAG) is another highly scalable DLT that utilizes a unique data structure for its highly efficient consensus mechanism. DAG-DLT’s biggest advantage is its fee-less Nano-transactions. To put it simply, the DLT becomes faster as more transactions take place on its network. All the nodes on the DAG have the dual function — any node can initiate a transaction but to validate it, it first needs to verify two previous transactions on the ledger.
4. Holochain
The next type is from the company Holochain, which claims to be the next frontier of Digital Ledger technology. Where Blockchain seeks to decentralize the transactions on the network, holochain makes the interactions between the individual nodes decentralized too. Thus, each node on the DLT network runs a chain of their own, where they are free to operate on their own network while being part of the bigger network.
5. Radix (Tempo)
The last entry in this list is the newest of the DLTs, which is Radix. It allows a user to create a distributed ledger (called ‘Tempo’) without the need of public or private Blockchain networks. The implementation doesn’t require any hardware components as it is extremely lightweight.
The Ledger is distributed among the cluster of nodes, which means any node can choose to carry a subset of the ledger called ‘Shards.’ This method increases the scalability manifold. All the nodes use the gossip protocol to synchronize their shards.
Conclusion
DLT is still being explored and is in the development stages. The above list highlights the other DLTs that have the potential to replace Blockchain, especially in a private enterprise scenario, wherein the scalability and speed are more important than the decentralization. We may see DLTs gaining more attention in the near future.
