This article was first published on Stories by Monetha on Medium
Distributed Ledger Technology (DLT), as the name implies, works on the same principles as the ledgers of old that were made of clay, stone, or paper — it keeps and records information and transactions. The primary difference is that distributed ledgers store information and transactions in digital form.
This technology also has no centralized database: the transactions are recorded and kept in different places at the same time. Having distributed ledgers means there’s no more need for a central authority to process and validate transactions. Once a consensus has been reached, each of the transactions will be recorded.
Each of these transactions is timestamped and given a unique cryptographic signature. Anyone who has a stake in the distributed ledger can access all the details of the transactions. Thus, distributed ledger technology stores an auditable and verifiable history of all the data stored on that specific dataset.
Distributed Ledger and Blockchain
Since the key feature of a distributed ledger is its decentralization, many wonder if it is similar to blockchain. They are not the same, but rather blockchain is a type of digital ledger.
A good analogy is a photocopier and Xerox. Photocopier is the generic term; Xerox is the brand. However, Xerox has become so well known that people think of it as the product and not as a brand.
The same thing happened with distributed ledger and blockchain. As the term blockchain has become more popular, it has become ingrained in people’s mind as the umbrella term for the technology.
Cryptocurrencies that Use Distributed Ledger
Bitcoin isn’t the only cryptocurrency that uses distributed ledger technology. Others include:
- Dash ...
To keep reading, please go to the original article at:
Stories by Monetha on Medium