Distributed Ledger Technology

WHAT: Distributed Ledger Technology (DLT) is a peer-to-peer (P2P) network architecture using a database spread across several nodes – where each replicates and saves an identical copy of a ledger and updates itself independently. P2P security is also accomplished via cryptographic keys and signatures.



WHY: The primary advantage of a DLT is the optional lack of a central authority. When a ledger update happens, each node constructs a new transaction, and then the nodes vote via a consensus algorithm (PoW, PoS, PoA, DPoS, etc) on which copy is correct and usable. Once a consensus has been determined, all the other nodes update themselves with the new, correct copy of the ledger.

EXAMPLES: There are three accepted versions of this technology, of which “blockchain” is the most well known and widely deployed:


(P2) https://codeburst.io/distributed-ledger-technology-fundamentals-you-must-know-2d0f82628258

(P1) https://www.researchgate.net/figure/Traditional-centralised-ledger-and-a-distributed-ledger_fig1_327867089

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