Distributed Ledger Technology (DLT) System
A Distributed Ledger Technology (DLT) System is a database management system that provides a consensus of replicated, shared, and synchronized digital data spread across multiple sites, institutions, or countries without a central administrative system.
- AKA: Distributed Ledger System, Shared Ledger System.
- Context:
- It can enable the creation of decentralized networks where data integrity is maintained among multiple participants.
- It can be categorized based on access control into permissioned, permissionless (and hybrid DLT systems) each serving different use cases with varying levels of transparency and control.
- It can utilize various consensus mechanisms and underlying technologies, including blockchain, directed acyclic graph (DAG), and hashgraph, to ensure data consistency and integrity across the distributed network.
- It can offer several benefits over traditional centralized databases, such as enhanced security, transparency, and reduced reliance on intermediaries, thereby fostering trust among participants.
- It can face challenges related to scalability, regulatory compliance, and the blockchain trilemma, which poses a dilemma between decentralization, scalability, and security.
- ...
- Example(s):
- a Blockchain Ledger Database System such as:
- a Decentralized Finance (DeFi) System,
- a DAG-based DLT System such as:
- ...
- Counter-Example(s):
- See: Distributed Database Management System, Decentralized Application (DApp), Consensus Mechanism, Smart Contract, Cryptocurrency, Government Office For Science, Decentralized Database, Single Point of Failure, Peer-to-Peer.
References
2024a
- (Wikipedia, 2024) ⇒ https://en.wikipedia.org/wiki/Distributed_ledger Retrieved:2024-4-7.
- A distributed ledger (also called a shared ledger or distributed ledger technology or DLT) is the consensus of replicated, shared, and synchronized digital data that is geographically spread (distributed) across many sites, countries, or institutions. In contrast to a centralized database, a distributed ledger does not require a central administrator, and consequently does not have a single (central) point-of-failure.
In general, a distributed ledger requires a peer-to-peer (P2P) computer network and consensus algorithms so that the ledger is reliably replicated across distributed computer nodes (servers, clients, etc.). The most common form of distributed ledger technology is the blockchain (commonly associated with the Bitcoin cryptocurrency), which can either be on a public or private network. Infrastructure for data management is a common barrier to implementing DLT.
- A distributed ledger (also called a shared ledger or distributed ledger technology or DLT) is the consensus of replicated, shared, and synchronized digital data that is geographically spread (distributed) across many sites, countries, or institutions. In contrast to a centralized database, a distributed ledger does not require a central administrator, and consequently does not have a single (central) point-of-failure.
2024b
- (ChatGPT-OpenAI, 2024) ⇒ Prompt: Summarize the concept Distributed Ledger Technology (DLT) in 1- 2 paragraphs. ChatGPT (model:gpt-4-turbo-preview). Retrieved: 2024-04-07.
- QUOTE: Distributed Ledger Technology (DLT) represents a paradigm shift in the way information is collected, stored, and shared across a network. Unlike traditional ledgers or databases that are centrally managed by a single entity (such as a bank or government institution), DLT is decentralized and distributed across multiple sites, countries, or institutions. Each participant within this network has access to the ledger and its immutable record of transactions, and the technology ensures that all copies of the database are updated simultaneously. This decentralization is aimed at reducing the risk of centralized points of failure, ensuring higher levels of security, transparency, and integrity of the data.
At the heart of DLT lies the principle of consensus, which is the process used to agree on the validity of transactions before they are permanently recorded. This ensures that every transaction is verified, transparent, and secure. Blockchain, the foundational technology behind cryptocurrencies like Bitcoin, is the most renowned and widely implemented form of DLT. It introduces the concept of blocks to store transaction data, chained together in a sequential manner. DLT is revolutionizing a myriad of sectors, including finance, healthcare, supply chains, and more, by enabling smart contracts, ensuring traceability, and increasing efficiency in operations.
- QUOTE: Distributed Ledger Technology (DLT) represents a paradigm shift in the way information is collected, stored, and shared across a network. Unlike traditional ledgers or databases that are centrally managed by a single entity (such as a bank or government institution), DLT is decentralized and distributed across multiple sites, countries, or institutions. Each participant within this network has access to the ledger and its immutable record of transactions, and the technology ensures that all copies of the database are updated simultaneously. This decentralization is aimed at reducing the risk of centralized points of failure, ensuring higher levels of security, transparency, and integrity of the data.