Distributed Ledger Technology (DLT)
DLT, or Distributed Ledger Technology, is a digital record-keeping technology that uses multiple nodes or computers to maintain a database. Unlike traditional ledger systems, where one central authority maintains the ledger, DLT enables a decentralized network to maintain and validate the ledger.
The distributed nature of DLT helps prevent the tampering of data, increases transparency, and streamlines the execution of transactions. It also reduces the incidence of fraud and cyber-attacks, as multiple nodes must validate any new data or transaction before it is added to the ledger.
DLT is often used in combination with blockchain technology, wherein transaction data is stored in blocks that are linked together to form a chain. Each block contains multiple transactions, and each block is linked to the previous block in the chain, creating a permanent, unalterable record of every transaction.
While the most well-known use case for DLT is cryptocurrencies, such as Bitcoin and Ethereum, it has numerous other potential applications across industries, including supply chain management, real estate, and healthcare.
In summary, DLT is a decentralized, digital record-keeping system that provides enhanced security, transparency, and efficiency compared to traditional centralized systems.