Distributed Ledger Technology is known as blockchain technology. Distributed Ledger Technology (DLT) is a protocol that enables the secure functioning of a decentralized digital database. Distributed networks eliminate the need for a central authority to keep a check against manipulation. Distributed Ledger Technology allows for the storage of all information in a secure and accurate manner using cryptography.
The very nature of a decentralized ledger makes them immune to a cyber-crime, as all the copies stored across the network need to be attacked at the same time for the attack to be successful. Interest in distributed ledger technology grew significantly in the decade after the 2009 launch of bitcoin, a cryptocurrency powered by blockchain technology that was the first to demonstrate that the technology not only worked but could scale and remain secure.
Various types of distributed ledger technology are currently in use. Blockchain, which bundles transactions into blocks that are chained together, and then broadcasts them to the nodes in the network, is the best-known type of DLT. Tangle, another type of DLT, is geared toward IoT ecosystems.
The Eclipse Foundation and the IOTA Foundation created the Tangle EE Working Group, which describes Tangle as “a permissionless, feeless, scalable distributed ledger, designed to support trustworthy data and value transfer between humans and machines.” Experts in this area promote DLT as an important technology that could not only drastically improve existing processes but could spur innovative new applications.