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distributed ledger technology (DLT)

Distributed Ledger Technology(DLT) is a technology in which account management is distributed across multiple servers. A typical application of Distributed Ledger Technology is the Blockchain.

DLT technology differs from the classic concept of centralized account management, Centralized Ledger Technology, in that account books or databases are not maintained by a central server, but copies of the account books are distributed decentrally across many computers. Peer-to- peer networks are ideally suited for this distributed concept. In DLT technology, data is stored decentrally on different servers and transactions are recorded by all of them. Once stored, the data is subject to the rules of the network.

Transparency is a key advantage of DLT technology, as participants can access all shared data. Data changes or additions are copied to the participant servers in the shortest possible time. Thanks to transparency, attacks are detected directly. Moreover, to be successful, an attacker would have to simultaneously access all data copies located on many servers.

With DLT technology, assets can be transferred between communication partners, as supported by the Internet of Values. The transactions are secure, reliable, and highly efficient because they occur directly between communication partners without the need for an intermediary intermediary. Therefore, distributed ledger technology and blockchain technology are expected to play a significant role in the future financial sector.

In addition to Distributed Ledger Technology and Centralized Ledger Technology, there is also Decentralized Ledger Technology. This is a network of many small networks that are all interconnected and the ledgers of accounts is distributed to all connected computers. With both Distributed and Decentralized technology, the distribution of the account book provides complete redundancy, which protects against misuse, failure and manipulation of the data.

Englisch: distributed ledger technology - DLT
Updated at: 16.08.2021
#Words: 281
Links: digital linear tape (DLT), account, application (app), server, peer
Translations: DE

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