The Rodman Law Group: Experienced DLT Attorneys
Distributed Ledger Technology (DLT) has quickly become the next frontier for technological pioneers, bluechip companies, and investors, and may soon revolutionize many aspects of our lives. DLT has the power to change legal contracting, banking, securities transactions, and general purchases of goods and services. DLT-based technologies are widely regarded as disruptive, which to put plainly, means that even people on the forefront of the technology do not know just how much DLT will impact society or even all the ways that it might do so.
RLG proudly represents DLT companies around the world. We work with companies that are at the forefront of DLT application, and are ready to assist with compliance, regulatory advising, jurisdiction selection, and corporate structuring.
What is Distributed Ledger Technology?
Distributed Ledger Technology (DLT) is a catchall term for technologies that utilize/propagate a consensus of replicated, shared, and synchronized digital data geographically spread across multiple sites, countries, or institutions. DLT utilizes independent computers, which are called nodes, to synchronize, record, and share data, storing these records in their respective ledgers. As there is no central administrator or centralized data storage, so there is no central failure point. DLT requirements include a peer-to-peer network, as well a consensus algorithm to verify that the data replication across the nodes is done correctly.
DLT: Blockchain, DAG, and Others
DLT comprises a set of records that are not stored or verified by one central body, hence the name. There currently a general misconception that DLT and blockchains are interchangeable, however this is incorrect. A Blockchain is a form of DLT, and is considered the first fully operational DLT, but it’s not the only use case. In addition to blockchains, Directed Acyclic Graphs (DAG), and hybrids of the two are existent DLT subtypes. We expect to see many new and distinct DLT subtypes in the near future as the technology progresses.
DLT offers far more control as to how the technology is implemented. While DLT is technologically decentralized, the implementer of that technology could have control about the way that the network functions, including its structure. DLT does not build a chain of blocks as more data is added to the ledge. The ledger which carries the transactions and data is merely stored across multiple servers, which communicate with other serves to ensure that the most current copy of that data is stored. DLT could be considered the initial groundwork for blockchain technology.
Take IOTA, for example. IOTA is a DLT that was built specifically to address issues inherent in other DLT forms. The team with IOTA created the Tangle Network, which utilizes original premises of DLT but does not operate on the standard blockchain method of block addition. Instead, the Tangle Network uses a DAG to verify and store transactions. The directed graph connects transactions (each vertex) to new transactions with edges, ensuring that each transaction is approved or verified by at least two new transactions. This two-confirmation transaction completion differs from the blockchain system, where the ledger must be distributed and verified by all users.
Another example of technology that has come from DLT are smart contracts and Dapps. Smart contracts utilize blockchain networks to create self-executing contracts that include the terms of the agreement in the code of the transaction. Thus smart contracts allow for anonymity in completion of a transaction without the need for any third-party enforcement of the contract or additional external analysis of the terms to verify that the transaction has been successfully completed. Dapps are decentralized apps that function partially or entirely on specific DLTs and function like traditional apps.
Distributed Ledger Technology Potential for the Future
DLT has the potential to solve some problems that have been persistent in the financial sector and supply chain management. It could also benefit many other sectors as well, including government management systems, manufacturing, and election security. Advancements in DLT are increasing efficiency, decreasing energy usage, and expanding opportunities for its implementation across the globe, from finance to agriculture, and sales of goods.
Areas of Expertise
The Rodman Law Group offers individualized, tailored legal services to individuals and companies involved in every aspect of the DLT ecosystem including but not limited to:
- Distributed Ledger Technology in general
- Directed Acyclic Graph Technology
- Smart contracts
The Rodman Law Group provides services to:
- Non-profit corporations
- Companies of all sizes
- Venture Capital Funds
The Rodman Law Group focuses on:
- Business formation
- Business planning
- Business transactions
- Regulatory compliance
- ICOs and STOs
- Jurisdiction Selection
- Intellectual Property matters
- General business counsel
For more information on our services, or to schedule a consultation to discuss how The Rodman Law Group might be able to help your DLT business, please contact us today!