On the face of it, distributed ledger technology (DLT), which powers cryptocurrencies such as bitcoin, does not appear problematic. By using databases distributed across multiple participants, and which can only be amended with universal consent, blockchain and other types of DLT create a safe, transparent environment for transactions, while reducing counterparty risk and improving efficiency.

It is a database that can securely record the movement of financial, physical or electronic assets and its effectiveness helps explain the rapid rise of bitcoin and competitors such as Ripple, Ethereum, and Hyperledger.