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Distributed Ledger vs. Blockchain Technology: Do You Know the Difference?

  • 1 yr ago

Blockchain is increasing in popularity because of bitcoin and other cryptocurrencies.[1] Many traditional centralized bodies such as governments and banks are starting to take an interest in blockchain technology.

A new term that is starting to make waves in the cryptocurrency space is the distributed ledger technology.[2] However, many people usually confuse distributed ledger with blockchain and vice versa. In this article, we will highlight everything you need to know about distributed ledger vs. blockchain.

What Is a Distributed Ledger?

A distributed ledger is a database that can be found across several locations or among multiple participants.[3] However, most companies still use a centralized database with a fixed location. Unlike a centralized database, a distributed ledger is decentralized, which helps to remove the need for a central authority or intermediary for processing, validating, or authenticating transactions.

Furthermore, these records will only be stored in the ledger after the parties involved have reached a consensus.

What Is Blockchain?

blockchain is a form of distributed ledger that has a specific technological underpinning. Blockchain creates an unchangeable ledger of records maintained by a decentralized network after a consensus approves all the records.

The significant difference between blockchain and DLT is the cryptographic signing and linking groups of records in the ledger that forms a chain. Furthermore, there is a chance for the public and users to determine how a blockchain is structured and run based on the specific application of blockchain.

Continue reading: https://blog.eccouncil.org/distributed-ledger-vs-blockchain-technology-do-you-know-the-difference/

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