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1 - Blockchain and Distributed Ledger Technologies

from Part I - Why Pay Attention to Distributed Ledger Technology in Banking?

Published online by Cambridge University Press:  26 October 2023

By
Claudio Di Ciccio
Edited by
Sabrina Leo  and
Ida Claudia Panetta
Sabrina Leo
Affiliation:
Sapienza Università di Roma
Ida Claudia Panetta
Affiliation:
Sapienza Università di Roma
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Summary

Distributed ledger technologies (DLTs) have attracted significant attention in the last few years. They gained a noticeable momentum, particularly after the introduction of blockchains as a basic building block for the development of new cryptocurrencies and tokens. This opportunity opened up new research directions to support the modern economy with numerous possibilities to redesign and innovate the market in accordance with the digital revolution we are witnessing. However, these technologies are yet to prove in practice their capability to match all the dependability and security requirements imposed in the economic and banking sector. In this chapter, we will provide an overview of the technical features of DLTs (and of blockchains in particular), outlining their potential impact in the economic field. We will first introduce the reader to their definition from a technical point of view, illustrate its core mechanisms and the guarantees they provide, and describe how these features are realised in a decentralised way. Finally, we will draw opportunities and challenges stemming from the adoption of this technology.

Keywords

BlockchainConsesusSmart Contract Distributed LedgerDecentralised Applications
Type
Chapter
Information
The Role of Distributed Ledger Technology in Banking
From Theory to Practice
 , pp. 11 - 34
Publisher: Cambridge University Press
Print publication year: 2023

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References

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