Distributed Ledger Technology (DLT)

Share this article:

Table of contents

1. 0.2. How DLT Works
2. 0.4. Benefits of Distributed Ledger Technology

Distributed Ledger Technology (DLT) refers to a system of databases that are distributed across multiple sites, regions, or participants. Unlike centralized databases, DLT enables data to be stored securely and transparently across a network of computers, ensuring consensus without a central authority. Blockchain is a prominent example of DLT.

How DLT Works

DLT operates by allowing all participants in the network to have synchronized copies of the database. When a transaction occurs, all participants verify and record it, making the data immutable and resistant to tampering. This decentralized approach increases trust and reduces the risk of fraud.

Benefits of Distributed Ledger Technology

DLT enhances transparency, security, and efficiency by removing the need for intermediaries, speeding up transactions, and reducing errors. It’s applied in industries like finance, supply chain, and voting systems, offering a secure and transparent alternative to traditional methods.