DLT is a decentralized ledger system where all nodes maintain and validate identical records without central authorities.
Blockchain is a specific type of DLT that organizes data into cryptographically linked, immutable blocks.
Both DLT and blockchain drive innovation across finance, governance, healthcare, and other industries by reducing trust and verification costs.
Learn what DLT is, how it differs from blockchain, and why both decentralized technologies are reshaping data management, trust, and industries worldwide.
WHAT IS DLT?
Distributed Ledger Technology (DLT) refers to a decentralized database system where information is recorded, stored, and updated across multiple computers or nodes in a network. Unlike traditional centralized databases, DLT removes the need for a central authority or intermediary, allowing participants to interact directly with each other. Every node maintains an identical copy of the ledger, and any updates are replicated and validated across the entire network.
🔍 Key Characteristics of DLT:
Decentralized Ledger Replication: Each node holds the full version of the ledger and independently updates it.
No Central Authority Needed: The ledger is not maintained by a centralized entity. Instead, each node contributes to building and recording updates.
Consensus-Based Validation: Updates to the ledger are confirmed only when a majority of nodes agree—this is known as consensus, and it’s executed automatically by consensus algorithms.
Immutable and Transparent Records: Once consensus is reached, the verified records are permanently stored across all nodes.
📌 A Simple Analogy
Imagine you and I are two nodes. If we transact, the transaction is validated and recorded through a consensus mechanism—no bank, government, or notary needed. The transaction becomes visible and immutable across the entire DLT network, reducing costs in time, money, and trust.
💡 Why DLT Matters:
For Individuals: Greater control over assets and personal data without relying on third parties.
For Businesses: Reduces the need for reconciliation and intermediaries, improving efficiency and cutting costs.
For Governments: Enhances data transparency and opens the door to streamlined public sector operations.
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BLOCKCHAIN TECHNOLOGY: A SUBSET OF DLT
Blockchain is one specific implementation of DLT—but not all DLT systems follow a blockchain structure. While both are decentralized, not every distributed ledger uses chained blocks to ensure data integrity and security.
A blockchain is maintained through a peer-to-peer (P2P) network that enables decentralized data distribution and management. There’s no central authority; instead, each participant keeps a copy of the data locally. For example, Ethereum nodes manage their on-chain data using Google’s LevelDB as a local storage engine.
🔗 What Makes Blockchain Unique?
Unlike some DLT systems that don’t organize data into blocks, blockchain structures information into chronologically ordered blocks. Each block is cryptographically linked to the previous one—forming a continuous, tamper-resistant chain.
Append-only ledger: Blockchain is essentially an ever-growing list of records. You can only add new data—past records are immutable and cannot be altered or deleted.
Ideal for record-keeping: This structure makes it perfect for logging transactions, tracking assets, managing historical records, and even recording biometric data like heart rate or temperature.
💰 Blockchain in Action: The Rise of Bitcoin
Cryptocurrencies like Bitcoin are the earliest and most well-known use cases of blockchain. Bitcoin gained mainstream attention in 2017, sparking global interest in decentralized technologies. Since then, governments, corporations, economists, and tech enthusiasts have been exploring how blockchain can be integrated into industries ranging from finance and healthcare to logistics and voting systems.
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CONCLUSION: BLOCKCHAIN VS. DLT
In summary, blockchain is a specific type of DLT, but not all DLT systems are blockchains. Both are decentralized by design and rely on consensus mechanisms to validate and synchronize data across nodes. The key structural difference is that blockchain organizes data into cryptographically linked blocks, allowing only for data to be appended—modifications or deletions are not possible.
Both technologies represent a paradigm shift in how information is managed and trusted without intermediaries. They are increasingly being applied across diverse sectors, from finance and supply chains to healthcare and governance.
Interestingly, although blockchain is a subset of DLT, it actually gained mainstream attention first. The popularity of blockchain—especially with the rise of Bitcoin—sparked broader interest in DLT as a foundational technology. Platforms like Hyperledger are prime examples of non-blockchain DLT frameworks gaining traction in enterprise environments.
Over time, the distinction between blockchain and DLT has become less clear. Many modern DLT implementations now include features traditionally associated with blockchains, such as native digital currencies and smart contract support. Today, the presence—or absence—of “blocks” and “chains” might be the only definitive line separating the two.
>>> More to read: What is Blockchain and How Does It Work?
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〈What is DLT? How It Differs from Blockchain〉這篇文章最早發佈於《CoinRank》。