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Blockchain and other Distributed Ledger Technologies (eg. Directed Acyclic Graph) have changed the data governance landscape tremendously. These technologies, while being the backbones of some of well known cryptocurrencies, present remarkable opportunities in data governance both at governmental and commercial levels.

Blockchain and other DLTs help to provide proof where we have traditionally relied only on trust. Public distributed ledgers make it nearly impossible to tamper or modify the data once it has been added to the block and distributed amongst all nodes. The blocks containing records of new transactions get uploaded in the network again thus forming a chain of trust and integrity. Based on these records, proof of event can be provided. These aspects are extremely valuable when we talk about applications such as land or real estate registries. DLTs provide many other options for utilisation, such as smart contracts or supply chain communication, for instance.

It is important to mention, though, that Blockchain and other DLTs have some weaknesses or aspects that one should consider before stepping into utilisation of these technologies. First, DLT is not a magic potion or remedy for every issue or problem that Governements or companies face. Although DLTs can be implemented in a number of situations, it might not be desirable or useful due to the price and complexity of the solution or existance of other, more traditional or cheaper ways of building the trust or producing proof of event or transaction.

Second, sometimes limited capacity of registering transactions per minute (it takes roughly 10 minutes to get new transactions recorded in Blockchain network), sets its limitations for uses where super fast record taking is of utmost importance.

Third, one should consider seriously the quality and quantity of the data before „pushing“ it out to network of nodes for recording. Due to the fact that data in public distributed ledgers cannot be tampered or corrected, false or poor data may pollute the network and cause huge material and immaterial damage to owner of the information or the organisation that posted such data in the network. That might give the cause for litigation which usually ends up with serious loss of financial resources and public image for sides concerned.

As a technology contributor to the creation of a virtual currency, Levercode has extensive experience in utilisation of DLTs. However, at the outset we put our focus mostly at the provenance and quality of the data. We believe that first of all we need to get the foundation right and data „straight“ and only then it makes sense to get these data sets recorded irreversably using Blockchain or other DLTs.

Blockchain and other DLT

Providing proof where trust is not enough