Distributed Ledger Technology (DLT) is a shared digital ledger that’s not kept in one central location, such as a bank’s main server or a company’s database. Instead, identical copies of it are stored on thousands of computers, also known as nodes, all over the world.
Think of it like a Google Doc that anybody can view and add to, but nobody can go back and secretly change past entries. When the network agrees on something and adds it, it gets locked in and is visible to all.
Blockchain is a type of distributed ledger that Bitcoin and Ethereum use. In this system, transactions are put into blocks and linked together by a chain that is meant to be hard to break.
One big advantage of DLT is that people can send money or trade things with each other right away. There is no need for banks or governments or companies to interfere. Since everyone holds the exact same updated record, it’s really hard for anyone to cheat, sneak in fake changes or to destroy it. In short, DLT is the tech behind cryptocurrencies. It gets rid of the middlemen and uses a global network of computers to run a clear, hard-to-mess-up system.
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