Key advantages for Distributed Ledger Technology
Distributed and sustainable: The ledger is shared, updated with every transaction and selectively replicated among participants in near real-time. Privacy is maintained via cryptographic techniques and/or data partitioning techniques to give participants selective visibility into the ledger; both transactions and the identity of transacting parties can be masked. Because it is not owned or controlled by any single organization, the blockchain platform’s continued existence isn’t dependent on any individual entity.
Secure and indelible: Cryptography authenticates and verifies transactions and allows participants to see only the parts of the ledger that are relevant to them. Once conditions are agreed to, participants can’t tamper with a record of the transaction. Errors can only be reversed with new transactions.
Transparent and auditable: Participants in a transaction have access to the same records, allowing them to validate transactions and verify identities or ownership without the need for third-party intermediaries. Transactions are time-stamped and can be verified in near realtime.
Orchestrated and flexible: Business rules and smart contracts that execute based on one or more conditions can be built into the platform, helping blockchain business networks to evolve as they mature and support end-to-end business processes and a wide range of activities.
Consensus-based and transactional: All relevant network participants must agree that a transaction is valid. This is achieved by using consensus algorithms. Blockchains establish the conditions under which a transaction or asset exchange can occur.
Source: IBM Institute for Business Value