The Second-Generation Solution: A Decentralized Approach
In this section, we’ll take a look at second-generation eBL platforms and how they avoid the legal issues created by earlier technologies.
Second-generation eBL platforms use blockchain technology to take a decentralized approach. Users can install their applications and save their data locally on their own servers instead of having to save their data on a service provider’s central repository, and can communicate directly with each other without their transactions going through the provider’s data servers.
To track changes within an eBL’s chain of possession and title, this approach uses a distributed transaction ledger, which by definition is not stored on a single server controlled by only one party. As a result, unlike first-generation solutions, this approach has no single point of failure and therefore is extremely difficult to tamper with. But these blockchain ledgers are necessarily public ledgers and can be read by anyone. The result is that potentially sensitive commercial transaction data is not private — a major drawback of most second-generation eBL services and a source of potential legal liability. WAVE BL’s solution to this problem is what sets it apart from every other eBL platform on the market, and what allows it to solve the legal issues involved in using other eBLs.