We typically use the phrases Blockchain and distributed ledger technology interchangeably when discussing distributed ledger technology. However, the key capability of all of these technologies is the capacity to work without the help of a third party. A separating line separates the two of them. The goal of this blog is to show how Blockchain and distributed ledger technologies are different.
What sets Blockchain apart from DLT?
To assist you to understand the distinctions, we'll focus on defining both of these technologies in detail.
What is DLT, exactly?
It's a network-wide database that's distributed over the entire network. In this case, each network node keeps a ledger. Any updates transmitted to it are received by each node.
Each node has the same level of power. A central server is not in charge of database management. As a result, DLT technology becomes more transparent. The other nodes recognise the ledger's authenticity and existence, and any node in the network has the authority to alter it.
Node uses a consensus technique to verify the transaction. The ledger's rule, on the other hand, determines the nodes' participation. As a result, at times all nodes can participate in the consensus, while at other times only a few can.
Distributed ledger technology ensures data security. There is no centralized authority in charge. DLT is ideal for financial transactions because it is a transparent technology.
What precisely is Blockchain, and how does it work?
To put it another way, Blockchain is a decentralized ledger system. The distributed ledger technology (DLT) is a subset of blockchain technology (Distributed Ledger Technology). As a distributed ledger system, blockchain possesses all of the attributes of distributed ledger technology, including transparency, decentralization, equal rights for all nodes, and data security. Blockchain has grown increasingly significant as a result of this. The fact that data cannot be updated, destroyed, or altered is one of the most essential features of Blockchain. It's just a matter of filling in the gaps now. This increases the visibility of transaction history, and Blockchain's data tracking and tracing capabilities make data tracking and tracing even easier.
The Blockchain industry is exploding at a breakneck speed. Developers are working on permissioned blockchain to increase the security of blockchain technology. It's a commercial transaction-speeding and security solution.
To put it another way, Blockchain is a distributed ledger system. On the Blockchain, every data transaction is time-stamped and saved in a sequential order. This makes data tracking easier, but with distributed ledger technology, data is simply dispersed over the network.
So, how do we proceed from here?
The system is significantly impacted by Blockchain, also known as Distributed Ledger Technology. If you want to add value to your CV, upskilling in either of these technologies will be advantageous. Many well-known companies and startups are working on Blockchain and are looking for Blockchain expert and specialists to help them realise the technology's full potential. Now is the time to enrol in the Blockchain Council's Blockchain certification programme if you want to be a part of this groundbreaking technology.