Distributed Ledger Technology (DLT) is the technology that underpins most cryptocurrencies. It is a decentralized system that records transactions across a network of computers, making it secure and resistant to fraud.
In a DLT system, data is stored in multiple locations, rather than in a central location. This makes it difficult for hackers to manipulate or corrupt the data. Each transaction is verified by multiple parties on the network, ensuring its accuracy.
The most common form of DLT is blockchain technology, which uses blocks of data linked together in a chain. Each block contains a list of transactions, and once added to the chain, it is virtually impossible to alter without changing all subsequent blocks – which would require a consensus from the majority of participants in the network.
DLT eliminates the need for a trusted intermediary, such as a bank, to facilitate transactions. This reduces costs and speeds up the process, making it more efficient and transparent. It also allows for more secure and reliable record-keeping, as the ledger is shared and continually updated by all participants.
