The main difference between the normal blockchains and the distributed ledger technology of Blockstack is the fact that the latter relies on a public-key infrastructure. In the case of Blockstack, the key would be your private key. With this type of technology, the ledger itself would be online and anyone can access it. As such, they can have a look at who owns various assets with ease.
The way that this works is that the ledger software would act as a layer on top of the network. The ledger can be accessed by anyone via their private key. In this way, only those people that have authority over the key would be able to view the transactions that have been made. The network would have no need for third-party intervention. This is a major advantage over other systems, most notably the master wallet system that is used in PayPal.
Unlike the conventional systems, this type of ledger does not require users to have any special skills. The software would allow users to make and perform transactions without having to understand any specific programming code. Also, there are no significant fees involved. As a matter of fact, there will be absolutely no charge at all until users decide to initiate a transaction. The system is entirely managed by the users themselves.
With this feature, the Blockchain concept is very much different from the traditional financial service model. When people conduct currency exchanges, they would first need to enter the exchange rate into a computer program that determines the value of the currency. With the Blockchain, these transactions would take place with a couple of clicks of a mouse.
The Blockchain ledger is also known as the Distributed Ledger Technology or DHT for short. The concept behind it is actually quite simple. The ledger itself would be open to everyone. However, when people want to transact on it, they would enter their public keys, which provide them access to the ledger.
Transactions would be processed by software that would ensure that the correct changes have been made to the ledger. The changes would be registered on the Blockchain and would be checked against the files that the system maintains. If the changes are bogus then the transactions would be rejected by the ledger.
As you may have guessed, this type of technology has a lot of potential. However, there are some risks associated with it. For one, the ledger must be maintained. As of now, it is the most popular way of managing ledger records. There are others out there too, but they are not as widely used. Hence, it would be wise to get your facts straight before deciding to use the Blockchain as a system for managing your finances.
There is one major benefit associated with the Blockchains. Namely, it reduces the costs involved in international trade. Because different countries have different laws, their exchange rates would often fluctuate greatly. With the Blockchains, all these discrepancies are prevented because each transaction would go through theblockchain instead of through the local national exchange.
This means that you would be able to save up to 70% on the cost of foreign currency exchange. In addition to this, you would be able to keep track of the prices of different currencies. There will be no more need to go to different websites just to find out what the exchange rate for a particular currency is. All you need to do is check the Blockchain. The best thing about it is that anyone can access it, whether they are a business or an individual. It is even secured by high-level encryption technology.
With the Blockchains, it would be possible for a user to have instant transactions. This means that you can finish making a currency transaction within minutes. With the absence of delays, you would be able to transact as often as you want. It would also be possible for you to get rid of third party fees and keep the cost down whenever you transact.