IT2864 - Week 1

What is a business ledger?

• A business ledger is a book of accounts that record of all business transactions of a company.

• A business ledger is a tool used to manage customer relationships.
• A business ledger is a document used to track employee attendance.
• A business ledger is a record of all non-financial transactions of a company.

Match the following:

• Decentralized

• 
• Centralized

• 
• Distributed

• 

Match the following:

• Decentralized Business Network

• Central party holds and maintains the ledger. All parties in the network are dependent on the central party.

• Centralized Business Network

• All parties in the network maintain its own ledger. Parties will update their own copy of the ledger.

• Distributed Business Network

• All parties in the network holds an identical copy of the ledger. Verified transactions are recorded into all the ledgers at the same time.

What are the pros of a decentralized network?

• Privacy. All parties own their own data. No need to share data.

• Flexibility. All parties can decide how they want to implement their own ledger and what data to store on their own ledger.

• No shared visibility, clarity and transparency across various ledgers.

• Duplication and inconsistent views.

• Time consuming & costly to reconciliate the data.

What are the cons of a decentralized business network?

• Privacy. All parties own their own data. No need to share data.

• Flexibility. All parties can decide how they want to implement their own ledger and what data to store on their own ledger.

• No shared visibility, clarity and transparency across various ledgers.

• Duplication and inconsistent views.

• Time consuming & costly to reconciliate the data.

What are the pros of a centralized business network?

• Single source of data. No need for data reconciliation, etc.

• Works well when there is a need for a central party (e.g. regulator) to control/monitor the data.

• Central party has power over the data and can tamper with it without other parties knowing.

• Central party may be prone to cyber-attacks.

What are the cons of a centralized business network?

• Single source of data. No need for data reconciliation, etc.

• Works well when there is a need for a central party (e.g. regulator) to control/monitor the data.

• Central party has power over the data and can tamper with it without other parties knowing.

• Central party may be prone to cyber-attacks.

What are the pros of a distributed business network?

• No need for central authority / third party intermediary

• Shared & transparent process

• Transactions record up to date

• All parties need to use a common platform. The use of Distributed Ledger Technology required to implement this setup

What are the cons of a distributed business network?

• No need for central authority / third party intermediary

• Shared & transparent process

• Transactions record up to date

• All parties need to use a common platform. The use of Distributed Ledger Technology required to implement this setup

What is a Distributed Ledger Technology (DLT)?

• A Distributed Ledger Technology (DLT) is a software for recording and verifying transactions on a single computer.
• A Distributed Ledger Technology (DLT) is a physical system for recording and verifying transactions.
• A Distributed Ledger Technology (DLT) is a digital system for recording and verifying transactions across multiple computers or nodes.
• A Distributed Ledger Technology (DLT) is a type of cryptocurrency.