Five ways governments & organizations can embrace DLT

By Ryan Worsley, CTO at iov42

Distributed Ledger Technology (DLT) has put itself in a position technology focus in 2022. But its capabilities go far beyond more well-known apps like electronic money.

From transforming digital data processing methods, setting new sustainability standards and protecting against fraud; The potential impact of this technology on governments and businesses must not be underestimated.

Here, Ryan WorsleyCTO at iov42, reveals the five most disruptive applications DLT has to offer and the rewards to be reaped by those willing to embrace it.

Handle data with care

From personal information to wealth and financial management records, we know that more data than ever before is being shared and stored online. Thus, individuals and organizations increasingly desire to control who has access to their data, why and when.

By storing transaction records, asset ownership, and product lifecycle data on a decentralized ledger, it is shared among multiple authorized parties. Therefore, any changes made are immediately visible. This means that information stored using DLT becomes uninterrupted (tamper proof), and all transfers and transactions are inherently transparent and reliable.

Sharing of personal data is also being transformed using Sovereign Identity (SSI). Details such as date of birth, place of residence or qualifications can be stored using decentralized identifiers (DIDs) on the blockchain and verifiable claims (VCs) issued by the blockchain. user holds. Third parties can then use these to demonstrate that an individual meets certain criteria without necessarily having access to the raw data. For example, proof that you are over 18 without sharing your exact date of birth.

Ensuring a more sustainable future

Sustainability is becoming a central part of more and more government and business agendas. Parcel-COP26 The ESG goals set the path for a more sustainable future that protects against the evolving climate crisis. It was report this week the The Amazon rainforest is at a critical juncture, in part due to mass deforestation. Analysis of satellite observations shows that forests are destabilizing with ‘profound’ global impacts, but how do we ensure that pathways to redress these losses are followed?

A reliable infrastructure is needed to bring about the practical changes needed to help governments and organizations truly achieve their ESG goals. DLT provides the foundation to eliminate corruption, negligence and inefficiencies that currently stand in the way of progress.

In the supply chain, this is like storing product lifecycle records on an immutable, decentralized ledger. Negligence could be more easily identified and key players held accountable. In the timber industry, leaders have used DLT to do just that, with Wooden chain Monitor and track sustainability regulations across the entire supply chain.

Wave goodbye to cheating

Another benefit of being able to track a product’s lifecycle is its ability to reduce fraud. Recent statistics show that fakes and imitations account for 2.5% of global trade. Removing these products from the market requires a system that allows organizations and their customers to more easily identify them in the first place.

And that’s where DLT comes in. Products can be given an immutable identity, represented by a hash, signature, or cryptographic token, and this information is stored on a distributed ledger. Then, as products pass through the marketplace, they can be identified and checked by others against this decentralized record. Verification of products (such as wine, perfume and cosmetics) in this way will mean that counterfeits are easier to detect and can be intercepted and removed from the system.

Cut out the middle man

Third parties are relied upon to facilitate a large number of secure transactions. From checkout to credential checks and certifications, processes are inevitably slowed down by this extra but necessary step. The conundrum for organizations is how to eliminate middlemen and speed up their processes in a secure and compliant manner.

DLT-enabled automation can be used to streamline processes without compromising security. Smart contracts are one such example. Entered into the distributed ledger as an “if / when, then…” statement, they allow processes to be started automatically whenever their predefined criteria are met. This eliminates the need for third-party testing or evaluation. Processes can be activated faster with no manual lag, while still complying with regulatory and security requirements.

Create more cooperation opportunities

Cooperation is an important part of successful and democratic business, but it carries its own risks. Share sensitive data and information can leave organizations vulnerable to foul play and make them reluctant to collaborate with others.

But what if we could eliminate that risk and collaborate successfully by creating trust through the use of DLT? Here, organizations can present, share, and view data and information in a more controlled and secure way.

All the processes and transactions carried out can be viewed and thus monitored by every authorized participant on a distributed ledger. Meanwhile, more sensitive information from each individual organization can be stored and shared in a way that allows collaboration without needing to grant unnecessary access.

By transforming the way our data is processed and shared, DLT is making digital transactions safer, more streamlined and secure. The benefits of implementing such an infrastructure – for governments through SMEs and owners of personal data – are numerous. Time will tell how quickly DLT is received. For now, one thing is for sure: it presents truly priceless possibilities. Five ways governments & organizations can embrace DLT

Fry Electronics Team

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