Distributed Ledger Technology (DLT)
A technological infrastructure and protocols that allow simultaneous access, validation, and record updating across a networked database.
While 'Blockchain' is the most famous DLT, not all DLTs are blockchains. The technology enables the peer-to-peer transfer of value and data without intermediaries. It is the fundamental layer for cryptocurrencies, central bank digital currencies (CBDCs), and supply chain transparency.
graph LR
Center["Distributed Ledger Technology (DLT)"]:::main
Pre_cryptography["cryptography"]:::pre --> Center
click Pre_cryptography "/terms/cryptography"
Pre_distributed_systems["distributed-systems"]:::pre --> Center
click Pre_distributed_systems "/terms/distributed-systems"
Rel_blockchain["blockchain"]:::related -.-> Center
click Rel_blockchain "/terms/blockchain"
Rel_p2p["p2p"]:::related -.-> Center
click Rel_p2p "/terms/p2p"
Rel_file_systems["file-systems"]:::related -.-> Center
click Rel_file_systems "/terms/file-systems"
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🧒 Explain Like I'm 5
📖 Imagine a club where every member has their own identical copy of the rulebook and list of members. Whenever someone pays dues, everyone writes it down in their own book at the exact same time. If one person tries to change their book to cheat, the other members see it doesn't match and ignore it. That's DLT—a shared book that everyone keeps honest.
🤓 Expert Deep Dive
DLT encompasses various architectures, including Blockchain (sequential blocks), Directed Acyclic Graphs (DAGs) like IOTA/Nano, and Hashgraphs. Unlike traditional databases, DLT relies on Consensus Mechanisms (PoW, PoS, pBFT) to solve the Byzantine Generals Problem. The core value proposition is Immutability, Auditability, and Resilience against single points of failure.