A Hybrid DLT combines elements of both public and private distributed ledger technologies. This architecture typically permits restricted access for certain operations, such as transaction validation, while allowing public visibility for other data or interactions. It offers a balanced approach, aiming to achieve the decentralization benefits of public chains alongside the control and privacy features of private networks. Such systems are designed for specific enterprise use cases requiring both transparency and confidentiality.
Context
The current state of Hybrid DLT often involves efforts to balance regulatory compliance with the advantages of decentralization. A key discussion point concerns optimizing the design to determine which parts of a system remain private and which become public. Critical future developments include the standardization of interoperability protocols between different DLT types and the expansion of real-world applications in regulated industries. These systems seek to bridge traditional business requirements with decentralized infrastructure.
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