DLT stands for Distributed Ledger Technology. It is a digital system for recording the transaction of assets in which the transactions and their details are recorded in multiple places at the same time. DLT is a decentralized record-keeping technology that allows simultaneous access, validation, and record updating. It is a consensus of replicated, shared, and synchronized digital data that is geographically spread across many sites, countries, or institutions. DLT is also referred to as a shared ledger as it requires a ledger to be shared across a peer-to-peer computer network.
DLT is a flexible system of recording information that is updated by those participating in the network, rather than by a central authority. It allows for transparent access to data and transactions, allowing all users of the DLT greater visibility into the operations of the system. DLT can streamline processes by removing intermediaries and automating transactions through smart contracts.
DLT is being used in various industries, including healthcare, real estate, and energy, to improve patient data management, streamline processes, and enhance security. It can be used to record property transactions, creating a tamper-proof and transparent record of ownership and transfer of property. DLT can also automate insurance claims, reducing administrative burdens and improving efficiency.
The most common form of DLT is the blockchain, which can either be on a public or private network. DLT data structure types include linear data structures (blockchains) to more complex directed acyclic graph (DAG) and hybrid data structures. DLT consensus algorithm types include proof-of-work (PoW) and proof-of-stake (PoS) algorithms and DAG consensus-building and voting algorithms. DLTs are generally either permissioned (private) or permissionless (public).
