Distributed Ledger Technology (DLT) is the broader category that blockchain belongs to — a shared, synchronized database maintained across multiple independent locations without a central administrator. Blockchain is the most well-known DLT design, but it’s not the only one.
Key Takeaways
- Blockchain organizes data into sequential, cryptographically-linked blocks — one common DLT design, but not the only possible structure.
- Directed Acyclic Graphs (DAGs) are an alternative DLT structure some projects use, aiming for different throughput and confirmation speed trade-offs.
- All DLT designs share the core goal of letting multiple independent parties maintain a synchronized, tamper-resistant record without a central administrator.
- Different DLT structures make different trade-offs around scalability, security, and decentralization.
- Evaluating a project’s specific DLT design is more informative than assuming all distributed ledgers work identically.
Our Take
Understanding that blockchain is one specific implementation of the broader DLT concept is useful for evaluating projects that use alternative structures without dismissing them as somehow less legitimate.
The practical question worth asking about any DLT project isn’t ‘is this a real blockchain’ but ‘does this specific structure’s trade-offs actually fit the problem it’s trying to solve.’
FAQs
Is all distributed ledger technology blockchain?
No — blockchain is the most well-known type of DLT, but alternative structures like Directed Acyclic Graphs (DAGs) also qualify as distributed ledgers.
Why would a project use a non-blockchain DLT structure?
Different DLT structures make different trade-offs around throughput, confirmation speed, and security assumptions.
📎 Source: Learning Heroes — Tecnología de Ledger Distribuido: Más Allá de Blockchain
