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Distributed Ledger Technology (DLT) Definition and How It Works

Short presentation about Distributed Ledger Technology

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luka
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20 views

Distributed Ledger Technology (DLT) Definition and How It Works

Short presentation about Distributed Ledger Technology

Uploaded by

luka
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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SHORT PRESENTATION ABOUT

Distributed
Ledger
Technology
(DLT):
Definition and
How It Works
Luka Vrdoljak
Content
• What are Distributed Ledgers?
• What is Distributed Ledger Technology
(DLT)?
• Blockchain vs DLT
• Ilustration process of reconciling daily
financial movements between two banks
using DLT
• Benefits of DLTs
• Challenges of DLT
• Conclusion
What are Distributed
Ledgers?
A DISTRIBUTED LEDGER IS A DATABASE THAT IS SHARED
AND SYNCED BY A GROUP OF INDIVIDUALS ACROSS MANY
SITES, INSTITUTIONS, OR COUNTRIES. IT ENABLES PUBLIC
"WITNESSES" TO BE PRESENT DURING TRANSACTIONS.

CRYPTOGRAPHY IS USED TO SAFEGUARD AND PRECISELY


STORE ALL OF THE INFORMATION ON THE LEDGER, WHICH
CAN BE ACCESSED VIA KEYS AND CRYPTOGRAPHIC
SIGNATURES. ONCE THE DATA IS SAVED, IT BECOMES AN
IMMUTABLE DATABASE GOVERNED BY THE NETWORK'S RULES.
What is Distributed
Ledger Technology
(DLT)?

• DIGITAL AND DISTRIBUTED TRANSACTION LEDGERS THAT HOLD BLOCKS OF DATA THAT ARE
DISTRIBUTED OVER A NETWORK OF COMPUTER NODES.
• EACH BLOCK OF THE LEDGER PROVIDES INFORMATION ON TRANSACTIONS MADE ON THE
PLATFORM.
• EVERY COMPUTER NODE IN THE NETWORK MUST VERIFY AND VALIDATE A BLOCK BEFORE IT
CAN BE ADDED TO THE LEDGER.
• DISTRIBUTED LEDGER IS A SUBSET OF BLOCKCHAIN.
Blockchain vs DLT
• DLT is a decentralized database that is administered by various contributors across
different nodes.
• Blockchain is a sort of DLT in which transactions are recorded using an immutable
cryptographic signature known as a hash.
• A blockchain has extra qualities
integrated into it to complete its
make-up or DNA. Cryptography and
mining algorithms are two of such
features.
• A distributed ledger, unlike
blockchain, does not require a block-
based data structure. A distributed
ledger is just a database that spans
numerous locations, regions, or
participants.
Benefits of • The transactions will be of high integrity.
DLTs
• The time stamped data on a DLT makes it
easy to verify and trace information

• Users have complete control over their


data and transactions, which gives them
more power.

• DLT lets two parties interact without the


need for a third party, effectively
decentralizing the system.

• Because all transactions are maintained


on a single public ledger, DLT eliminates
the costs and complexity of keeping data
across several ledgers.
Challenges of
DLT
• DLT has a very uncertain regulatory
status

• It is hard to link the physical and digital


assets

• DLT and blockchain consume too much


energy

• Integration concerns
CONCLUSION

DLT can completely transform the


way governments, organizations,
and businesses operate. It may
assist governments with tax
collecting, passport issuing,
property registry and license
recording, and the distribution of
Social Security payments, as well
as voting processes.
Do you have
any
questions?
Thank you for your
atention

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