What is DLT

Distributed Ledger Technology

The way the DLT systems deal with data by storing, processing, validating and authenticating it, portrays how DLT is decentralized to its core. It does not rely on a centralized server and distributes the responsibilities all across the network of different computers. The data storing process goes through a consensus amongst all the decentralized participants of the network and as they agree to the validity of an action, the data is time-stamped and given a unique cryptographic signature for safety reasons.

Those who may have an understanding of blockchain will notice that all of this sounds similar to how blockchain functions but blockchain works without any central authority. There is no central authority to keep tabs on the activity being performed on the blockchain. The DLT systems can still function even if there is a central authority assigned to some extent manage the network.

This clearly indicates that DLT is getting the benefits of both technologies as it adopts to decentralization and yet the control of the system remains in the hands of the owners of that DLT system. Therefore, big companies and enterprises prefer to adopt DLT system in order to process, validate and authenticate all sorts of data altercations. Depending on the structure, purpose and functioning of the network’s use case, it can be done privately or publicly similar to blockchain. It can be assumed as a foundational base for forming a blockchain but DLT is not obliged to construct a chain of blocks while handling data.

DLT is more trusted by big enterprises because they value their control over their data meanwhile public sector companies prefer blockchain because it provides data accessibility for all the participants.

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