What is the Difference between Blockchain And Distributed Ledger Technology

Understanding Distributed Ledger Technology (DLT)

Distributed Ledger Technology is a digital system. It records transactions and their details across multiple places at the same time. Unlike traditional ledgers, DLT has no central data store or administration functionality.

Here's a simple list of main DLT characteristics:

• Distributed across many locations
• No central authority
• Records are safe and unchangeable
• Transparent history of transactions

 

Credit: www.gao.gov

 

Introducing Blockchain

Blockchain is one kind of DLT. It got famous through Bitcoin. In blockchain, transactions get added in blocks.

Blocks have certain storage capacities. When filled, they link to the previous block. This forms a chain of data, hence the name blockchain.

Essential blockchain features include:

• Contains blocks of data
• Each block connects to form a chain
• Uses cryptography for security
• Usually public and transparent
• Can be decentralized

Distinguishing Between DLT and Blockchain

Let's compare DLT and blockchain with a table:

Distributed Ledger Technology (DLT)	Blockchain
Broad technology	Type of DLT
Not all DLTs form a chain	Forms a chain of blocks
Can be both public or private	Often public and transparent
Doesn’t necessarily use cryptography	Always uses cryptography

Every blockchain is a DLT, but not every DLT is a blockchain.

Credit: www.quora.com

 

The Importance of DLT and Blockchain

DLT and blockchain are important for a few reasons.

They help in keeping records that cannot be changed.

They also help in making everything more open and easy to check.

Because of these reasons, many industries are looking into DLT and blockchain.

Some industries include finance, healthcare, and law.

 

Frequently Asked Questions On What Is The Difference Between Blockchain And Distributed Ledger Technology

 

Is Blockchain A Type Of Dlt?

Answer: Blockchain is a specific form of Distributed Ledger Technology (DLT) that chains data in blocks.

How Do Dlt And Blockchain Differ?

Answer: While all blockchains are DLTs, not all DLTs use the blockchain's chain of blocks structure for data organization.

What Makes Dlt Unique From Blockchain?

Answer: DLT's uniqueness lies in its broader category of distributed database without the necessity for data to be bundled into blocks.

Can Blockchain Operate Without Dlt?

Answer: No, Blockchain cannot operate without DLT as it is a subset and requires a distributed ledger to function.

Conclusion

We've explored the differences between DLT and blockchain. Now you know that blockchain is a form of DLT. They serve the same purpose but are different in design and function. This knowledge is a stepping stone into the vast realm of digital ledgers. Both technologies offer innovative solutions for secure transactions.