The emergence of the new applied technologies in the daily lives of people and businesses has meant a major revolution due to the multitude of new concepts and applications that have appeared over the years.
As a result, terms such as “blockchain,” “Big Data,” and “NFC” (Near Field Communication)—which, until a few years ago, were known only to a handful of specialists—are now widely understood by the general public.
With that in mind, and in an effort to continue familiarizing ourselves with these terms that are so widely used today, we will now focus on highlighting the main differences between blockchain and distributed ledger technologies, also known as DLT.
Key Differences Between DLT and Blockchain
Blockchain technology, widely known for its importance in the world of cryptocurrencies and we've already explained what it involved in this post, it is generally considered the foundation of distributed ledger technologies.
However, this is a mistake because blockchain is simply one type of DLT, or Distributed Ledger Technology, which encompasses many other distributed ledger technologies.
That, therefore, is where the fundamental difference between the two lies. Blockchain is a DLT model with specific characteristics that set it apart from others DLTs such as Hyperledger Fabric, Corda, and Ripple, each with its own unique characteristics, advantages and disadvantages.
Furthermore, another difference between DLT and blockchain that has been noted in recent literature on these technologies is that the term “blockchain” is used for projects based on public networks whose purpose is technological decentralization, while DLT is more commonly used in corporate environments such as businesses or government agencies.
What are the characteristics of DLTs?
To delve a little deeper into a lesser-known concept such as DLTs, we will now provide a general overview of the common characteristics they share.
The The main feature they all have in common is the ability to store the data entered into a program publicly, permanently, and simultaneously shared by a group of people or institutions, making the information accessible to all of them. Hence the name “distributed ledger.”.
In addition, these technologies are capable of recording virtual assets in a decentralized manner, using cryptography to make and verify changes that occur in the database and securely conduct transactions between two parties.
In conclusion, the digital age in which we live requires us to continually update our knowledge so that we can take advantage of the benefits offered by the new technologies that have emerged in recent years and those that will come in the future.
