The history of blockchain technology has its beginning in the need to create an infrastructure that allows the bitcoin token to live in it. The technology behind the Blockchain is the Digital Ledger Technology (DLT). Blockchain is more the collective term used for the whole.

Thus, what is the DLT? In its simplest form, it is a distributed (decentralized) and highly available database or better a transaction system, which in its structure ensures that no data can be manipulated and every transaction is always and at any time recorded in its entirety (what was how, where, when, by whom and for what reason) and is always and everywhere and available at any time. With this “un”-manipulability also arises the confidence in the data which are stored on the transaction system.

On this transaction system live now the actual added values like tokens, which can store as data memory information from conditions, values or in addition, transactions themselves. Here there are of the well-known payment tokens (e.g. Bitcoin, ETH, and many more) also other token types, which have other characteristics in their specialty and target direction and can be used otherwise. Now combine this with the smart contracts and you get the actual business systems. Once a smart contract has been installed on such a system, it can never be deleted again and in itself represents the business definition as a whole. Smart contracts can now be used to design payment systems, define goods movements, orchestrate collaboration models between organizations, and so on. Smart contracts are the agreement that contain the transaction flow but also the necessary workflow structures that one would expect in business.

This overall construct is rounded out by wallets and knowledge about the user. In this context, wallets serve as a form of aggregator of tokens and can thus store and hold all possible token types. These wallets belong to persons and/or machines that must be known in the transaction system so that they can act on the infrastructure itself.

blockchain technology