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Distributed Ledger Technology (DLT)

Distributed Ledger Technology (DLT)



A distributed ledger is a type of data structure which resides across multiple computer devices, generally spread across locations or regions.

Distributed Ledger Technology includes blockchain technologies and smart contracts. While distributed ledgers existed prior to Bitcoin, the Bitcoin blockchain marks the convergence of a host of technologies, including timestamping of transactions, Peer-to-Peer (P2P) networks, cryptography, and shared computational power, along with a new consensus algorithm. 

In summary, distributed ledger technology generally consists of three basic components:
A data model that captures the current state of the ledger
A language of transactions that changes the ledger state
A protocol used to build consensus among participants around which transactions will be accepted, and in what order, by the ledger.
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