Distributed Ledger (DLT)

March 21, 2019

A Distributed Ledger (DTL) is a decentralized network in which transactions are recorded on a public ledger in a series of nodes. A DTL is built on trust. Each node within the network trusts the others and works together to maintain the record. Nodes can be changed on the DTL as long as all (or most of) the nodes approve the change. (Note: this is different from a blockchain, which exists on an immutable ledger and cannot be overwritten.)

Unlike a blockchain, in which anyone with computer power can create new blocks/nodes, a distributed ledger is permissioned. In other words, to create new nodes, a computer must be linked to the primary ledger and given permission from the system to alter the ledger. This makes DTL a good option for banks and credit unions, which can build in-house ledgers.

See also: Blockchain

To learn More, see our other Articles

2019 Crypto RoundUp: The 4 Biggest Stories in Cryptocurrency This Year
3 Myths Surrounding Cryptocurrency
How CERES is Solving the Banking and Compliance Issues in the Cannabis Industry
Why Compliance is More Important Than Ever In The Crypto Space