Whitepaper on Distributed Ledger Technology
"DLT.... is better known as “blockchain.” and is essentially a technology that supports networks of
databases that enable participants to create, disseminate and store information in a secure and efficient
manner. While database technologies are not new, what makes DLT's special is that these networks of
databases can operate smoothly and securely without necessarily being controlled and administered by a
central party that is known and trusted by every participant."
"Bitcoin marked the introduction of blockchain-based DLT. Since then, there has been a rapid evolution in
the design of DLT platforms. Platforms with varied features and characteristics have emerged on which
developers can build different applications.
DLT platforms can be divided into two main categories: unpermissioned and permissioned. In
unpermissioned platforms, the ledger is maintained by collaborative action among nodes in the public
network, and is accessible to anyone. In a permissioned platform, participation is restricted to member
nodes only: the ledger is maintained by authorised nodes and is accessible to registered members only.
Permissioned platforms enable fast transaction validation to take place, offer enhanced privacy, and at the
same time take less energy to operate."
The Research White Paper
The full DLT Whitepaper is here
In this connection, the Fintech Facilitation Office (FFO) of the Hong Kong Monetary Authority (HKMA) has
commissioned the Hong Kong Applied Science and Technology Research Institute (ASTRI) to conduct a
research project on the subject of DLT. The key objectives of this project are to carry out an open-minded
and an in-depth examination of the technology (including an investigation into its potential, its risks, and
its regulatory implications); and to identify possible applications of DLT to banking services by engaging in