EY report: Enabling blockchain and distributed infrastructure

Rage Review : This is a report by Ernst & Young, which introduces the concept of distributed technology, analyzes the advantages and disadvantages of several types of distributed infrastructure technology and their potential applications. It is believed that the technology has a bright future, but is also affected by multiple factors. Therefore, it tells corporate decision makers that they need to fully consider internal needs and internal and external factors if they want to successfully use this technology.

Translation: Annie_Xu

Ernst & Young published an article on blockchain technology, introducing the concept of blockchain distributed ledger and its infrastructure, to help companies understand how to grasp the application of this technology.

Follow the WeChat public account “区块链笔Blockchain” and reply with the keyword “EY1” to view and download the full text of this report.

Introduction to distributed ledgers and distributed infrastructure

The article points out that distributed ledgers supported by smart contracts can be applied to many fields. The name of the distributed ledger infrastructure means that the control must be shared among the participants. As for the degree of sharing, it can be set within the range of fully centralized to fully decentralized, mainly in three types: fully decentralized, fully centralized and hybrid. The advantage of centralized infrastructure is its cost-effectiveness, and the disadvantage is that it requires the participants to trust the central participants and is vulnerable to attacks; the hybrid type does not require a central trusted party, but there is the possibility of organized malicious damage, which increases the risk and cost; the decentralized infrastructure does not rely on third parties at all, but participants need to buy tokens, so they are greatly affected by their price fluctuations, and the verification and update of public ledgers are mostly inefficient. However, this does not affect its application in existing business cases.

Potential applications of distributed infrastructure

The disintermediation, compromise and scalability of distributed infrastructure technology make it have a wide range of applications, including clearing and settlement, financial transactions and supply chain management, insurance claims management, closed economies and loyalty points, and Internet of Things applications.

However, this article points out that despite the bright prospects of distributed infrastructure technology, its actual use is affected by many factors, including regulatory approval, compatibility with the company's existing financial ecosystem, and the impact of the transition from centralization to decentralization on all aspects of the company.

So although the technology has a bright future, it is a great challenge to successfully apply it. Enterprises need to fully integrate all internal and external factors and consider what is needed, so as to greatly increase the chances of success of distributed infrastructure.