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What is Distributed ledger technology ?

Distributed ledger technology (DLT) refers to a type of technology that allows multiple parties to maintain a shared, decentralized, and tamper-proof digital ledger of transactions. Its is a way for different computers to share information and keep track of things in a way that is secure and transparent. DLT is like a big notebook that many people can use at the same time, and it helps to make sure that everyone has the same information and that everything is done in a fair way. Imagine if you and your friends all had a notebook, and you all wrote down everything you did together. Then, every night, you would all compare your notebooks to make sure they were the same. That’s kind of like how DLT works.

DLT is used in many business and industries, like finance, supply chain, and healthcare. Here are a couple examples: In finance, DLT can be used to keep track of money transfers, this way it can help prevent fraud and make sure that everyone knows how much money is going where. In Supply Chain, DLT can be used to keep track of products as they move through the supply chain, from the manufacturer to the store. This helps to ensure that products are authentic and that they were made in an ethical way.

Examples of Distributed Ledger Technologies

One of the most well-known examples of DLT is blockchain, which is a decentralized and distributed digital ledger that is used to record transactions across a network of computers. Blockchain technology is the foundation for Bitcoin, Ethereum and other cryptocurrencies, but it can also be used for other purposes such as smart contracts, supply chain management, digital identity, and more.

Another example of DLT is IOTA, which is a distributed ledger technology for the Internet of Things (IoT) that enables secure and transparent communication between IoT devices. It uses a type of distributed ledger called a Tangle, which allows for faster and more scalable transactions than traditional blockchain technology.

Holochain is the third type of DLT and is a distributed ledger technology that is designed to be more lightweight and energy-efficient than blockchain. It is based on a concept called “hashing,” which allows it to validate data without needing the same amount of computational power as traditional blockchain technology. DLT technologies like blockchain, IOTA, and Holochain have the potential to transform a wide range of industries by providing secure, transparent, and tamper-proof ways to track and verify transactions, assets and other types of data.

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