Distributed Ledger Technology for Closed Environment

Abstract

Distributed ledger technology is a system of recording digital transactions in an immutable ledger that is distributed across different locations. It is getting popular day by day not only in the public domain but also among enterprises. Various industry experts are working together to maximize the benefits of distributed ledger technology without affecting their current system flow. Distributed ledger technology not only provides a system of trust between untrusted parties, but it can also be used to improve system security with the use of complex cryptography. Enterprises are interested in distributed ledger technology because it can help in reducing cost and time of transactions but they can’t use public ledgers as transactions and business processes should be hidden from everyone except authorized users only. The heart of distributed ledger technology is consensus algorithms which help in the settlement of transactions. Different consensus algorithms that can be helpful to enterprises are reviewed, analyzed, categorized and simplified flow is shown in pictorial form along with their limitations that helps the enterprise to choose best consensus algorithms for their implementation of distributed ledgers.