What Is Distributed Ledger Technology (DLT)?
Distributed Ledger Technology (DLT)
Distributed ledger technology (DLT) is a database of information that’s shared and duplicated across a network of computers in different locations. In contrast to a centralized ledger, it’s a flexible system of recording information. The information on the ledger, or record, is updated by those participating in the network, rather than by a central authority. The ledger can be accessible to some or all users, and the information stored on it can be verified and audited. Peer-to-peer transfers that have value can be recorded on a DLT. The value transferred could be money, securities, or even personal information.
Distributed Ledger Technology and Blockchain Technology
The definition of a DLT is similar to, but not the same as, that of blockchain technology. A blockchain is one type of distributed ledger technology, though not every distributed ledger is a blockchain. Some DLTs don’t share all the data with all the participants in the way that blockchains do.
Winston & Strawn’s multidisciplinary team of lawyers understands the benefits and challenges presented by blockchain and distributed ledger technologies.