Why do governments want to use DLT?

Distributed Ledger Technology is a data storage technology that distributes information between multiple communication nodes or computing devices. It has several key features: lack of a central administrator, sharing with synchronization according to a given algorithm, decentralized geographical distribution of database copies between all communication nodes.

At its core, this is the first database that eliminates the need to use a central service, distributes the database to all communication nodes, assigning them responsibility for maintaining the system and checking information.

Each node makes changes to the registry independently of other nodes, then they all vote for changes and, upon reaching consensus, the registry is supplemented with new data. Each member of the network at the same time has its own identical copy of the registry, and the changes themselves are added within a few minutes.

The distributed ledger has become known to a wide range of people mainly due to its use in the cryptocurrency blockchain. Still, any data can be entered into it: financial, legal, statistical, electronic and others.

Why are governments inclined to DLT?

A distributed registry is a database that is distributed between multiple network nodes or computing devices. Each node receives data from other nodes and stores a complete copy of the registry. Node updates occur independently of each other.

A key feature of a distributed registry is the lack of a single control center. Each node compiles and writes registry updates independently of other nodes. The nodes then vote for updates to make sure that most of the nodes agree with the final version.

DLT, in most cases, is designed to help authorities both gather and share data when it’s needed. It is advantageous, and we should mention this applies to the gambling industry as a lot of casinos are determined and liable to share information with regulators. In general, blockchain is becoming widely popular in gambling. Casinos are letting their players use Bitcoin and other cryptocurrencies as a payment method and adding DLT to the platforms will make them feel much safer. One of these casinos is Spinia which is actively using this service and its Canadian branch Spinia casino Canada is the most active with the DLT. If something unexpected or unusual happens, they are always very open to collaborating with the government, which is a very helpful trend.

Governments want to use distributed registry technology because it significantly reduces trust costs. Using distributed registries will help reduce dependence on banks, lawyers, notaries, and regulators. An example of a distributed registry is the Corda platform from R3.

Distributed registries represent a new paradigm for the collection and transmission of information. They are capable of fundamentally changing the ways of interaction between individuals, enterprises and government bodies.

In the case of distributed ledger technology, we can witness one of those potential explosions of creativity that allows us to achieve outstanding heights in innovation. It may turn out that this technology can provide a new level of trust in a wide range of services. As the open data policy, and we have already seen this, has fundamentally changed the relationship between citizens and the state, so the transparency of these technologies can change for the better our financial markets, supply channels, client and b2b services, and public registers.

Therefore, the government can experience great joy, working in this area, and look forward to working with other departments to develop these opportunities. DLT is an opportunity government should not miss, and the economy will benefit significantly if it is adopted.