Is iEthereum a Blockchain or a Distributed Ledger?

Is iEthereum a blockchain or a distributed ledger technology? Or both?

Blockchains and distributed ledger technology (DLT) are similar.

Yet, Blockchains and distributed ledger technologies are different.

Is this double speak? What am I saying?

Distributed ledger technologies are not necessarily blockchains. A blockchain is a specific type of distributed ledger technology. Does this make sense?

We can say with 100% certainty that iEthereum is a distributed ledger technology, but is it a blockchain?

Lets take a closer examination. Let’s break down this confusion, if any.

In simpler terms, a blockchain and a distributed ledger are related concepts, but they have some differences. Lets examine!

1. Structure:

   Blockchain and distributed ledger technology (DLT) are both decentralized systems for recording and verifying data across multiple nodes, but their underlying architectures and methods for achieving this differ.

   Blockchain: It is a specific type of distributed ledger that organizes data into blocks, each containing a list of transactions. These blocks are linked together in a chain through cryptographic hashes. Once a block is added, it is difficult to alter previous blocks, ensuring immutability.

   iEthereum does record its transaction activity into a TX hash that is confirmed within a shared block on the Ethereum blockchain. “Shared” with other Ethereum and ERC transactions, therefore it isn’t its own blockchain but does satisfy the blockchain verse distributed ledger definition.

   Distributed Ledger: A distributed ledger is a database that is decentralized and shared across multiple nodes or locations. As a broder term, distributed ledgers do not require data to be structured in blocks and chains and they can use various architecture mechanisms to ensure data integrity.

   Let’s reemphasize for clarity that while all blockchains are distributed ledgers, not all distributed ledgers are blockchains.

   iEthereum does satisfy this definition of a distributed ledger technology.

2. Consensus Mechanism:

   A core tenet of distributed ledger technology and blockchains are how transactions are approved. This mechanism is considered to be the “consensus.”

   Blockchain: The most popular blockchain consensus mechanism is Proof of Work (PoW) or Proof of Stake (PoS), to agree on the state of the ledger and validate transactions before they are added to the chain.

   The Bitcoin blockchain consensus is known as Proof of Work (POW). The Ethereum blockchain consensus is currently Proof of Stake (POS). Delegated Proof of Stake (DPOS), Practical Byzantine Fault Tolerance (pBFT), Istanbul (iBFT), Federated (fBFT), Diem BFT, and Proof of Elapsed Time, Proof of Character and so many other forms of consensus are being innovated for both private and public blockchain networks.

   These titled definitions of the the consensus mechanism encapsulates the process in which the consensus is formed. For example, the Proof of Work consensus process is performed via a mining process (work) through a decentralized network of computational power that solves the math problems of the transactions involved.

   iEthereum, as an ERC20 token is built on top of the Ethereum blockchain. Which currently, is a Proof of Stake consensus. iEthereum Pulsechain is also a Proof of Stake consensus. iEthereum POW is built on top of the Ethereum POW blockchain which is a Proof of Work consensus. And iEthereum Fair (Dis Chain?) is built on top of the Ethereum Fair blockchain which is also a Proof of Work consensus.

   Distributed Ledger: The consensus mechanism can vary and may not necessarily involve the intricate mining processes seen in some blockchain systems.

   iEthereum is not a mined token. It was pre mined at its originating genesis date. Therefore, iEthereum does not involve an intricate mining process; this technical responsibility falls onto the Ethereum network Proof of Stake consensus for its genesis mint, original distribution as well as past, current and future transactions are concerned.

   Regardless of our own philosophical opinions on which architecture and/or consensus mechanisms are the best; each of these architectures will serve a role and a place in the coming future. Whether a significant role or minute. The future pie charts illustrating the market share of each architecture/ consensus will be up to the market to decide. The future industry segmentation graphs of each will highlight which architecture/ consensus is most utilized will be determined by the industries themselves. Which one is more beneficial? Which one is faster? Which one is more safe? Which one is more cost efficient? Which one is more or less interoperable? Which one is preferred for consumer use? Etc!

3. Access Control:

   Access control in blockchain and distributed ledger technology (DLT) varies depending on the implementation.

   Blockchain: Often employs a permission-less or public model, where anyone can join the network, participate in the consensus process, and read/write data.

   The original immutable code of iEthereum does employ a permission-less and public model as defined by the above definition.

   Distributed Ledger: Can be either permissioned or permission-less, meaning access to the network and the ability to validate transactions may be restricted to certain participants. This flexibility enables DLTs to cater to different use cases, balancing transparency, privacy, and control.

   Many ERC20 tokens have permissions encoded with various administrative/ ownership controls as functions. I would considered these ERC20 tokens more of a distributed ledger than a blockchain although this isn’t 100% true as they run on the Ethereum blockchain. This is just a simpleton explanation. ERC Tokens are sort of a hybrid system, so rather than thinking a 50/50 split hybrid, perhaps you can begin thinking of these tokens as 60/40, 30/70, 90/10 or however each individual code has decided to incorporate the features or tenets of either blockchain or DLT’s.

   iEthereum is an immutable code, permission-less. This falls more into the beneficial features of a blockchain.

4. Use Cases:

   Blockchain and distributed ledger technology (DLT) have diverse use cases spanning various industries. Together, they empower innovative solutions for trust, efficiency, and security in digital ecosystems.

   Blockchain: Originally developed to support cryptocurrencies like Bitcoin, blockchain technology has since evolved to serve a wide range of industries, including finance, supply chain management, and healthcare. Its core strengths—transparency, immutability, and decentralization—make it particularly well-suited for applications such as secure digital payments, real-time supply chain tracking, and robust digital identity solutions (which is a touchy subject and deserves a separate article).

   Distributed Ledger: Has a broader range of applications beyond finance, including areas like supply chain management, identity verification, and healthcare.

   iEthereum fits both the above definitions of blockchains and distributed ledgers for use cases. iEthereum is transparent, immutable and has the decentralized consensus making it relevant, marketable and flexible for all sorts of applications.

5. Cryptographic Hashing:

   Blockchain: Relies heavily on cryptographic hashing for the integrity and security of the data within blocks.

   Distributed Ledger: While cryptographic techniques may still be used, the emphasis on hashing and chaining may not be as pronounced as in a blockchain as various architecture to organize the data is at play.

iEthereum fits the definition of both; a blockchain and a public, open source, immutable, distributed ledger technology.

But if I had to choose; iEthereum, as an ERC-20 token, aligns more closely with blockchain technology than with the broader concept of distributed ledger technology (DLT). It operates on the Ethereum blockchain, which organizes data into sequential, cryptographically linked blocks—a defining feature of blockchains. The reliance on cryptographic hashing for transaction verification, address generation, and block creation further emphasizes its blockchain nature, ensuring security, immutability, and data integrity. Additionally, Ethereum’s public and permission-less structure sets it apart from other DLT systems that may lack these blockchain-specific characteristics.

In conclusion, classifying whether iEthereum is a blockchain or a distributed ledger technology is very nuanced. While a blockchain is a specific type of distributed ledger, defined by its chain of blocks and consensus mechanisms, distributed ledger technology (DLT) is broader, offering more flexibility for various applications. Although industry might beg to differ; iEthereum, as an ERC-20 token, operates as a true layer 2 technology on the Ethereum blockchain, making it more aligned with blockchain principles but without its own dedicated blockchain. Its structure is more adaptable than a traditional blockchain, offering greater flexibility in use cases, akin to DLT. As such, while iEthereum would be considered a subset type of distributed ledger technology (DLT), they remain closely associated with blockchain technology.

I do not know if this article helps or not.

iEther way, We see value!