What Is DLT?
Distributed ledger technology can be defined as infrastructure composed of shared digital data spread and processed via nodes – multiple computer networks. DLT is decentralized, which means the technology works without third parties.
Blockchain is the most popular example of distributed ledger technology. The technology allows people globally to participate in projects instantaneously and in a cost-effective manner. DLT allows business to be conducted faster and in unmatched volumes.
However, DLT isn't well understood by the federal government and the public. This information gap presents serious risks. Federal agencies have responded with increased scrutiny on DLT-related ventures.
If you don't want federal scrutiny, investigations, or charges, talk to a DLT attorney first. Distributed ledger technology lawyers can limit your exposure to investigations and other enforcement actions immensely.
Expert DLT Attorneys and Consultants
Do you really need legal advice on DLTs? Yes. If your company deals with DLT, you should be worried about DLT compliance obligations. These obligations can only be identified and effected by an experienced distributed ledger technology team.
Entities and individuals can use DLT in many ways. Applications can range from launching tokens to streaming logistics (supply chain management) and other business operations. However, federal agencies are increasingly focused on entities and individuals that use this technology.
Since federal agencies lack a complete grasp of DLT and related technologies, they tend to take a suspicious view. Agencies like the SEC are constantly suspicious of DLT applications in business with a view that they are likely to harm investors, competitors, and capital markets. However, this shouldn't be the case.
Don't expose your company to federal investigations and other enforcement actions by using DLT without seeking legal advice.
Blockchain Lawyer has DLT attorneys and consultants ready to advise clients on current and future DLT compliance obligations. Take a proactive approach to DLT compliance and avoid future risks that can compromise your company's reputation and attract other serious problems like hefty penalties.
Cryptography in DLT
In DTL applications, cryptography secures data using algorithms and cryptographic signatures that give access to authorized persons only. Generally, cryptography secures communications to allow the sender and receiver of communication or a transaction to be the only parties capable of viewing and decrypting the message.
In DTL applications, cryptography improves how data and information is shared, stored, and processed. Businesses that use DLT stand to save money and time by securing their client's data. Decentralization offers benefits like enhanced information security since third parties don't access or control information flow.
DLT Applications Across Industries
DLT can be used for numerous applications by entities and individuals. Even governments stand to enjoy DLT benefits.
Notable advantages of DLT like security make the technology perfect for recording and storing data across networks without worrying about cyber-attacks.
DLT benefits like transparency make the technology perfect for transactional purposes where all parties can view transactions and get the required assurances.
DLT decentralization gets rid of third parties like banks, which offers benefits like lower transaction costs. Risks of breaches and data privacy issues are also eliminated.
DLT also makes it easier to get funding. Individuals and entities can go directly to the public to seek funding and bypass slow and restrictive traditional funding sources like venture capitalists and banks.
DLT Application Examples
Some industries are already using decentralized ledger technology today. The most notable examples are discussed below:
DLT in the Art Industry
Many individuals in arts – i.e., artists, collectors, art dealers, painters, and gallery owners – are good examples of people who have started using DLT. Artwork is an asset that needs intellectual property rights protection like trademark, copyright, royalties, etc. DLT makes this possible by offering unchangeable and genuine IP protection.
DLT in Real Estate
Real estate transactions benefit from smart contracts and tokenization projects. Decentralized ledger technology gets rid of brokers in transactions. With DLT, it is possible to close a real estate deal without the need for real estate agents, escrow, or bankers. Real estate tokenization – transforming real property into digital form – has made it possible and safe for people to own a portion of the same real estate, reducing overdependence on mortgage lenders.
DLT in Healthcare
Healthcare professionals and institutions handle sensitive patient data daily. DLT can secure such data without interfering with normal operations. The technology can also aid tamper-free data recording.
DLT in Banking
Banks have sensitive customer information like healthcare facilities, so they also stand to benefit from safe and secure storage of sensitive customer information. The industry stands to secure bank accounts, bank transfer activity, commercial contracts, and more. DLT also assists in verification of data as per KYC/AML compliance guidelines.
DLT for Government
Federal agencies are using DLT to save time and cost, and boost efficiency. The agencies stand to enjoy data protection benefits for sensitive data. Government operations like procurement, funding, civil service activities, etc., stand to be more cost-effective and streamlined through DLT.
The above DLT applications are just a small representation of how the technology is being used. There are more industries such as telecommunications, accounting, and legal industries utilizing DLT in many ways.
Do I Need a DLT Attorney?
Yes. If you or your company are looking to use DLT in any way, you need legal advice on DLT compliance issues from an experienced DLT lawyer. DLT is beneficial for streamlining operations, cutting costs, saving time, safeguarding sensitive information, boosting transparency, and more.
However, the technology encompasses blockchain and related applications that have attracted federal agency attention. The SEC, for instance, has increased scrutiny on individuals and entities that use blockchain and related technologies since there are increasing fraud cases and existing regulations don't offer adequate consumer protections.
Don't wait to be investigated by the SEC to hire a DLT attorney. Take a proactive approach and contact seasoned DLT attorneys and consultants such as those at Blockchain Lawyer, who understand DLT compliance and related issues across multiple industries.
Contact us today for a free, non-obligatory consultation on DLT. We also represent clients facing DLT-related investigations or charges.