Understanding Blockchain and DLT – Unravel the core concepts of Blockchain and Distributed Ledger Technology (DLT) to grasp their foundational differences.
Structure: Linear vs. Distributed – Blockchain organizes data in a linear sequence of blocks, whereas DLT encompasses various structures, including non-linear models.
Consensus Mechanisms – Blockchain typically uses Proof of Work or Proof of Stake, while DLT can implement diverse consensus algorithms tailored to specific needs.
Transparency and Permissions – Blockchains are often public and transparent, whereas DLT systems can be permissioned, restricting access and enhancing privacy.
Use Cases – Blockchain is renowned for cryptocurrencies like Bitcoin, while DLT is applied in various sectors, including supply chain management and finance.
Scalability – DLT systems may offer enhanced scalability options compared to traditional blockchain architectures.