Difference Between Blockchain and Distributed Ledger Technology (DLT)

Difference Between Blockchain and Distributed Ledger Technology (DLT)

In this way, the modification of the block corrupts the entire chain, making it practically impossible to alter it. In addition, the technology based on blockchains works in a distributed way. 

In other words, several computers operate simultaneously with the chain, so it cannot be attacked if it is not coordinated (something that is also impossible in practice).

Outstanding Uses of the Blockchain

The use of this technology has made it possible to create services that are currently as relevant as cryptocurrencies, thanks to the reliability and stability of the system, as well as the security and confidentiality in the data processing.

Similarities and Differences of DLTs and the Blockchain

In short, both DLTs and blockchains are database organizations that allow distributed management. As a result, they receive significant benefits in system integrity and security. 

Thus, to corrupt the data of any of these technologies, it would be necessary to attack all the operators simultaneously, which implies that the attacker must outcompete all the participants together.

However, DTL is a more generic technology as it simply refers to a decentralized database. For example, the peer-to-peer networks used during the early 2000s to download files (Emule, Sharemule, Bittorrent) were DTL systems, which have little to do with cryptography and the financial system.

Is Blockchain the Ultimate Evolution of DLT?

The application of DTL technology to a model of interconnected blocks, such as the blockchain, originates a beneficial technology to create a secure system such as the one that cryptocurrencies need. 

But experts are currently emphasizing this difference to both applications. The reason is that the blockchain has already shown its potential, serving as the foundation for numerous cryptocurrencies and encryption and identification technologies.

However, DTLs seem to be a new opportunity for large companies, franchises and multinationals. For example, smart contracts could make many legal and economical operations incredibly faster and cheaper. 

At the moment, some have worked on them from blockchain technology (highlighting the Ethereum platform).

But nothing prevents the development of new features for distributed networks that help optimize business management. 

In short, DLT and blockchain should not be confused. While the second derives from the first and has very particular characteristics, the DLT could still surprise us with more than exciting developments that will undoubtedly continue to drive the world of fintech and legal tech, among other sectors of business digitization.

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