DLT (Distributed Ledger Technology) is a protocol that allows for the secure operation of a decentralized digital database. Distributed networks eliminate the need for a centralized authority to monitor for manipulation.
Using encryption, DLT provides for the secure and accurate storing of any information. The same thing can be done with "keys" and cryptographic signatures. When information is saved, it becomes an immutable database that is subject to the network's rules.
The concept of a distributed ledger is not entirely novel, and many organizations store data in multiple locations. However, each site is often linked to a central system that updates each one on a regular basis. Because a central entity must update each remotely situated note, the central database is vulnerable to cyber-crime and prone to delays.
Are Distributed Ledger Technology (DLT) and blockchain the same thing?
Blockchain is a type of distributed ledger technology. A blockchain is a distributed and immutable ledger that is used to transfer ownership, record transactions, track assets, and assure transparency, security, trust, and value exchanges in a variety of digital asset transactions.
Distributed ledger technology (DLT) is based on an encoded and distributed database that serves as a ledger for storing transaction records. DLT is, at its core, a new database technique with a data architecture in which encryption is used in each transaction update and verification becomes possible across the specific blockchain network, depending on its aim and stakeholders.