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Introduction 

Blockchain is a rapidly emerging technology with a broad scope of applications. It brings a revolution in the financial industry. It is the foundation of cryptocurrency. It introduces a transparent and decentralized approach to financial transactions. To explain which cryptocurrency was the first to implement blockchain technology, you need to understand the inception of Bitcoin, and the difference between distributed ledger technology vs blockchain. 

The innovation of the Alliance Blockchain project creates a bridge between traditional finance and decentralized finance (DeFi). This article gives a broader overview of the origin of blockchain, DLT, and Blockchain technology differences, and the role of alliance blockchain in reshaping the financial industry. 

Origin of Blockchain 

• Foundation: Satoshi Nakamoto, the man behind Blockchain discovered this unprecedented innovative technology in the year 2009. He introduced bitcoin to blockchain applications and provided viable solutions of alternatives to fiat currency.
• Birth of new technology: Blockchain rapidly gained popularity in other applications outside of cryptocurrency for its transparency, security, and decentralized approach and paves a new way of innovation. 
• Decentralized approach: Blockchain technology reveals a decentralized and distributed record-keeping system that can record transactions permanently without any intervention of a third party. It resolves the ambiguity of duplicity of data and allows speedy exchange of information with added transparency. 
• Realization of potentiality: More research and investment have been started on blockchain technology since the recognition of its potentiality of application in various industries. An attempt was made to apply this advanced technology in healthcare, logistics, finance, and real estate industries to introduce more resilience in transparency and accuracy. 
• Smart Contract: After the successful introduction of cryptocurrency, blockchain technology came up with the new feature of “smart contract” which can be exchanged without any need for a middleman. It executes the transaction if the predetermined terms and conditions are satisfied. 
• Scalability concern: Blockchain technology proved its strongest presence since its inception but it still suffers from a few challenges. As the technology is based on updating all systems at the same time with the same code of information, it takes a longer time for execution. 

Distributed Ledger Technology vs Blockchain 

A distributed ledger uses several nodes or computing devices. Each node saves an identical copy of the ledger and updates itself independently. No centralized system controls the transaction. The nodes are updated independently and act based on the consensus algorithm. 

Blockchain technology is a form of distributed ledger technology. It has a digital ledger for transactions which is distributed across the peer-to-peer network. As it uses a distributed ledger, it does not require any centralized system. Data quality in the blockchain is maintained by database replication. It uses various encryption and decryption methods, distributed networks, and digital signatures. 

• Structure: Blockchain uses the concept of storing data in a chain of blocks. Each blocks are connected sequentially. Blockchain stores the data in an unchangeable cryptographic signature, which is called a “hash”. On the other side, DLT does not have any block structure. DLT stores data across the nodes connected via the internet. 

• Decentralization: Blockchain follows decentralized designs whereas DLTs do not do so. Decentralization means the transfer of data to a distributed network without having a centralized control or entity. DLT also follows the same protocol but DLT models like Hyperledger or Corda do not implement a decentralized system. Their design uses private or permission-based networks and authorized can only access the data. 
• Consensus Mechanism: Blockchain uses a self-regulatory consensus mechanism. Consensus refers to an agreement between two parties.  It is a set of software protocols through which all the peers of the blockchain come to a mutual agreement.  

For example, Proof of stack (PoS) or Proof of Work (PoW) in blockchain validates transactions based on a consensus mechanism. On the contrary, DLT may not use a consensus algorithm for achieving a decentralized environment. For example, DLTs like Hyperledger Fabric or Corda do not depend on traditional consensus mechanisms. 

Role of AllianceBlock chain token 

AllianceBlock chain resolves the gap between traditional and decentralized finance. It offers a compliant and secure blockchain platform. It addresses security concerns and creates a bridge between the two. Alliance blockchain claim token allows users to access the AllianceBlock ecosystem. It allows users to access liquidity incentives and staking rewards. Users can legally trade cryptocurrency on this platform. It converts digital tokens to bankable products.  It runs through a set of consensus nodes which are synchronized to confirm the accuracy and transparency. 

Key feature : 

• Regulatory compliance: DeFi faces major challenges in terms of regulatory compliance but AllianceBlock allows it to reach a wider audience by maintaining regulatory compliance. 
• Cross-border payment: Alliance blockchain allows cross-border transactions which reduces cost and enhances transparency. 
• Tokenized financial product: Alliance blockchain generates digital tokens to represent traditional financial assets like stock, bonds, or commodities. It enables greater liquidity by offering tokenized products. 

Future of Blockchain 

Blockchain technology has immense potential shortly. It confirms the transparency and security of transactions. Furthermore, AllianceBlock tokenizations provide an add-on advantage by bridging between traditional and decentralized finance. 

• Distributed ledger mechanisms have the potential to change how we record transactions and manage applications. It is a widely accepted mechanism behind cryptocurrencies like Bitcoin. 
• There are significant application possibilities in supply chain management systems. Traditional paper system of supply chains has several complexities in moving the product from producer to end users but blockchain technology is able to establish communication with better transparency,  secured transactions, and record-keeping mechanisms. 
• Secure cloud storage of blockchain stores data with a unique signature and resolves data inconsistency, The same copy of data is distributed among thousands of systems, and updates are also reflected instantly to all systems. 

Conclusion

The evolution of blockchain technology is undoubtedly a great innovation. Since the inception of Bitcoin, it has established a more reliable mechanism for storing, recording, and transferring data within the system. AllianceBlock claims token protocols connect traditional finance with decentralized finances. DeFi is a rapidly growing technology and getting broader acceptance whereas AllianceBlock expands this advancement mitigating the challenges faced by DeFi and TradFi.