What is DLT? Distributed ledger technology explained

DLT or distributed ledger technology is a digital system that allows multiple parties to share and update a common database in a decentralised way, without relying on a trusted third party. It's a type of database that records, stores, and distributes data in a decentralised, secure, verifiable, and reliable way. DLT includes blockchain, DAG, and Hashgraph technologies. Blockchain is the most well-known and widespread DLT, and it has been used to create cryptocurrencies. DLT has the potential to transform the way we do business and interact with one another, creating self-reinforcing positive impact across all societies. DLT solves the Byzantine generals problem for a network, ensuring all participants can agree on the state of the network. There are two types of DLT: public and private. Public DLT, such as Bitcoin and Ethereum, allows anyone to participate in the network without permission. Private DLT is only accessible to authorised parties, and it is typically used for enterprise applications. The biggest impact DLT potentially has is on trust, particularly so for open, permissionless DLTs, be it trust amongst people, trust in institutions, and even trust in societal processes like voting. Read more