DLT

Distributed Ledger Technology refers to any system in which a shared database is maintained simultaneously across multiple nodes or locations, with no single central authority controlling it. Changes to the ledger are propagated to all participants according to agreed-upon rules, and each participant holds a copy of the record. Bitcoin's blockchain is the most well-known DLT, but the term also covers other designs such as directed acyclic graphs (DAGs) and permissioned ledger systems used by banks and corporations.

The core property that distinguishes a DLT from a conventional database is the absence of a single point of control. In a traditional database, one organization holds the master record and participants must trust that organization not to alter or corrupt the data. In a DLT, the record is maintained collectively. Altering the history requires either controlling a majority of the network's computing power (in proof-of-work systems like Bitcoin) or violating the consensus rules in some other way. This makes DLTs useful in settings where multiple parties with different interests need to share and verify data without relying on a single trusted intermediary.

Not all DLTs are equivalent in their decentralization. Bitcoin's blockchain is permissionless: anyone can participate as a node or miner without approval from any authority. Many DLTs used in corporate or government contexts are permissioned: access is restricted to verified participants, and a consortium of known entities controls the network. The practical properties, including censorship-resistance, openness, and immutability, differ significantly between permissionless and permissioned systems.