What is Distributed Ledger Technology (DLT)?

Distributed ledger technology (DLT) is the infrastructure in which encrypted and segmented information is stored in a decentralized manner. A distributed ledger is a database spread and synchronized over a network across multiple sites, institutions, or geographies.

Network participants can access information, make updates, and provide a basis for information verification processes within their authorization. Since the data is located at more than one point and the system operates with the consensus established in the middle of the network participants, there is no need for an authority or administrator.

Distributed ledger technology, more commonly known as blockchain technology, was introduced to the world along with Bitcoin. Its first widespread use was with Bitcoin, which emerged in 2008. Bitcoin is an intermediary and fiduciary payment system developed by Satoshi Nakamoto in 2008, when the global financial system collapsed. With the recognition of Bitcoin crypto money, studies on different branches related to the blockchain, which is the distributed ledger technology behind it, are started.
has been started. Distributed ledger technologies have been developed due to the fact that the blockchain technology is not sufficient in terms of speed and scalability in the studies.

Distributed ledger technology is considered to have far-reaching effects on third-party reliance sectors and institutions.

How Distributed Ledger Technology (DLT) Works

Since there is no random authority in decentralized structures, data must be stored, accessed, updated and verified in consensus. With DLT, all data is securely stored using cryptography and can only be accessed using the key and cryptographic signature.

Distributed Ledger Technologies

We can list the types of distributed ledger technologies as follows;

  • Hedera Hashgraph: Hashgraph is a patented distributed ledger technology developed by Swirlds. It was developed using Lisp and Java programming language. Every process that takes place in the Hashgraph network is called an event. Each event includes timestamp, hash of two previous events, processes and electronic signature information.
  • DAG (Directed Acyclic Graph): It is a distributed ledger technology open to everyone. In Directed Acyclic Graph technology, there is no process price as there are no blocks and miners to add information to the network. Processes are not kept as a linear chain. Processes are recorded non-linearly. In the used reconciliation protocol, each process validates the previous two processes and records the process information.
  • Holochain: It is a distributed ledger technology open to everyone. Holochain, unlike blockchain, is based on participants creating other chains instead of a single chain. In blockchain technology, the process is carried out on a common single chain for all participants in the network, while in Holochain, the participants store the data in their local chains as a module of the general network. Associates only record their own processes instead of all data on the network.
  • Tempo: It uses sharding to distribute data across many nodes in the network. When recording a random process, the logical clock number is recorded with it. Each node increments its logical counter by one for each process it witnesses.

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