LeoGlossary: Distributed Ledger Technology (DLT)

5 mo (edited)
1 Min Read
167 words

How to get a Hive Account

A digital system where transactions of assets are recorded in multiple places simultaneously. This is a database where there is no central authority. Instead, nodes are set up that each run the software and synchronize the transactions. These nodes are the ones responsible for reaching consensus on all transactions.

All data is secured using cryptography with each user gaining access via a cryptographic key. The process is determined by what is set down in the protocols of the network.

This is the essence of blockchain with the best known network being Bitcoin.

Distributed Ledger Technology brings enhanced security since nodes are run individually, processing and validating each transaction, before synching up. Without a central database, cybercrime is reduced at the blockchain level.

This is also known as Triple-Entry Accounting where the debit and credit are recorded along with a copy going into the master ledger (blockchain).


Posted Using LeoFinance Beta