Ledger

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Distributed Ledger Technology ("DLT", or "ledger" for short) is a technology underlying Bitcoin and other cryptocurrencies that enables the storage and transfer of information in digital form. Often used Blockchain incorrectly used as a synonym for distributed ledger technology; however, the blockchain is only one type of architecture.

Un order to enable the chaining of blocks, the blockchain uses a cryptographic signature called a "hash". In this sense, it is possible to call a blockchain a distributed ledger. This is because the information can also be shared with anyone and within the network. In the case of cryptocurrencies such as Bitcoin, this is achieved by allowing other participants to look up stored chain information in real time without installing specific software.

Blockchains are much more than a simple data structure. It is possible to use a blockchain to determine rules for transactions or even to set up a Smart Contract to create. Furthermore, a blockchain is a sequence of blocks. However, a distributed ledger does not necessarily have to exist in the form of a chain. IOTA or Hashgraph are also distributed ledgers, but both systems manage without a chain structure. A DLT does not need a proof-of-work algorithm to reach consensus. As a result, it theoretically offers better scaling.

Distributed ledger technology can be used to store information from any type of application, from financial services to public administrations.

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