The Differences between Distributed Ledger Technology and Blockchains

One of the most common mistakes committed by users when it comes to understanding the crypto world is that they consider the concepts of both blockchain technology and distributed ledger technology to be the same. Interestingly, the terms are even used interchangeably in many cases, which can destroy the meaning of the sentence for someone who knows the differences.
The fact that both of these words and their definitions have become entwined during the last couple of year’s calls for serious action to be taken, to ensure that both of them are understood to the core by all readers. We will be differentiating between both these terms by providing an in-depth definition that clarifies the difference that is present between these two terms.
Distributed Ledger Technology
It is indeed complex to phrase the wide concept behind distributed ledger technology into a simple definition. A distributed ledger can be considered as a type or form of database that is spread across multiple participants, regions, or sites. As it can be expected, a distributed ledger is often decentralized; otherwise it would be hard to form a differentiation between this and all other centralized databases formed by other organizations.
As it removes the intermediary from the process, the distributive ledger technology is particularly appealing for many individuals. Enterprises also take the assistance of distributive ledger to process, authenticate or validate data exchanges or other transactions. Once consensus is achieved, the results are stored in the ledger. Each and every record that is stored within the distributed ledger is time-stamped and has its own cryptographic signature.
All participants on the ledger can view all of the records that are part of the ledger. The technology provides users with verifiable information based on what is stored on the dataset.
On paper, and in hindsight, the entire process of how we explained a distributed ledger may look just like how you might have envisioned a blockchain system. However, the blockchain setup is just one type of the distributed ledger.
Most people know blockchains from how they have powered Ethereum, Bitcoins and other successful forms of cryptocurrency. They get their name from the process of how blocks are added to the chain that contains all records related to the transaction.
To ensure that the chaining of all blocks is possible, there is a cryptographic signature used by numerous country wide cryptographers. The signature is known as a hash. Looking from this perspective, blockchains can well be considered as a ledger that can be shared with everyone at every time. The fact that they are way more than just a simple data structure makes blockchains even more interesting and intriguing.
You can use a blockchain to think over and determine the rules for a specific transaction. Moreover, you can also create a smart contract to cater to your needs for simplified and better regulations. A blockchain is a chain of blocks that are not required in distributed ledgers. Distributed ledgers also do not require physical proof of the work that is done and end up providing better scaling options.

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