DisLedger is a trademarked and patent-pending distributed ledger technology (DLT), designed for capital markets and IoT micropayments (or other high-speed transactional systems), where privacy and transaction speed are paramount. DisLedger is a distributed concurrence (rather than blockchain) ledger, designed not only to surpass current blockchain transaction speed (its basic demo system is said to already scale to over 400,000 transactions per second), but also to eliminate the technical and organizational weaknesses of the current blockchain consensus models, while providing cryptographically secure, non-repudiable transactions and ledgers.
Despite there being various consensus models, blockchains generally require parties that aren’t involved in a given transaction to give their consent for the transaction to be conducted. This is because, when all the transactions on the network are recorded in a single ledger, members who are not party to a transaction must provide their approval for the transaction to be added to the ledger. This means than an organization may find itself dependent upon the approval of direct competitors to process its transactions, while these same competitors gain intelligence about its business dealings. DisLedger is designed for situations where this is unacceptable; while it provides the same benefits of immutable records and regulatory transparency, transactions are processed only by the actual parties involved.
Furthermore, since blockchain consensus protocols are complex and imperfect, and since blockchain networks are complex systems with a flux of members and no oversight, it can become very difficult and costly to prove that a given transaction was processed accurately and without manipulation, if/when a dispute arises. With a distributed concurrence ledger, the evidence that the parties agree is documented repeatedly, cryptographically secured, and validated continuously.
The shared counterparty ledger, which is private and accessible only to the parties involved, holds every transaction between the parties. For each transaction, both parties conduct a cryptographic hash on the contents of their transaction data, resulting in a transaction hash. If their transaction hashes are not equal, the transaction cannot be processed. Upon agreement, a hash of the counterparty ledger updated with the latest transaction is conducted by each party and provided to the other party for comparison. If these are equal, then this second concurrence irrefutably proves the accuracy not only of the latest transaction but of the whole chain of records as well. A log of these hashes and transaction attempts is maintained by both parties, and hashes can be repeatedly verified (and logged), thus providing a clear evidentiary trail of the transactions for dispute resolution. DisLedger also provides an accounting of the entire asset base of an organization via the organization’s Prime Ledger, to which each counterparty ledger is added. The Prime Ledger also provides the ability to use the assets for lending and collateral.
DisLedger is using tokenization to manage intellectual property licenses for its technology, which has already been in development for the past 1½ years. DisLedger tokens will give users the ability to license the technology on a per-transaction basis rather than having to purchase a full enterprise license. This allows organizations to build and deploy their own DisLedger systems and pay only for their actual usage over time. The per-transaction IP licenses will be issued as ERC20 standard tokens named DCL that can be purchased via the Ethereum network. This approach creates a hybrid system where users process transactions using DisLedger’s technology, while their licenses to use the technology are processed on the Ethereum network. With this novel utilization of the standard, and since there is no mining involved, there are no incremental transaction costs, no cryptocurrency, and no alt-asset risk.
DisLedger is headed by Dan Conner, who is also President of Packet Dynamics, a specialized IoT device and communications equipment provider for Beyond Line Of Sight (BLOS) and Satellite Communications (SATCOM) systems. Conner was previously VP Marketing and Sales of Innovative Concepts, a tactical communications company that supported military customers worldwide. He has also served in the US Army Special Forces. The company received Seed funding (undisclosed amount) in August 2016.
|Pricing Structure||Users will register with DisLedger, be verified, then be given instructions how to purchase DisLedger IP tokens during the soft launch/pre-sale and launch.|
|Holding of Funds||N/A|
|Technical White Paper||The DisLedger whitepaper is an in-depth presentation of the architecture, however it does not go into technical details – the technology is patent pending. Much of what appears in the whitepaper is summarized in this review.|
|Team||Headed by Dan Conner (see review); no information on other team members.|
|Location||British Virgin Islands|
|Blockchain||Ethereum for IP licensing, DisLedger for private transaction processing.|
|Project Code||N/A (patent pending)|
|Token Rights||Per-transaction IP licenses.|
|Token as Asset||N/A|
*Disclosure – At the time of writing, Cryptorated staff owned no DisLedger tokens.
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