DLT

Get familiarize with the terms Distributed Ledger

What is Distributed Ledger Technology (DLT)/
Blockchain?

Distributed Ledger Technology (DLT), commonly implemented as blockchain, is a decentralized digital system that records transactions across multiple computers in a secure, transparent, and tamper-proof manner. Unlike traditional databases controlled by a central authority, blockchain operates on a peer-to-peer network, ensuring immutability, cryptographic security, and real-time consensus.

abstract

Definition and Key Features

  1. 1.Decentralization: No single point of control or failure.
  2. 2. Transparency: All participants can verify transactions.
  3. 3. Security: Cryptographic hashing prevents fraud and unauthorized changes.
  4. 4.Smart Contracts: Self-executing agreements that automate processes.

The Potential of DLT/Blockchain

DLT/blockchain has transformative potential across industries by enabling:

Trustless Transactions: Eliminates intermediaries, reducing costs and delays.

Financial Inclusion: Provides unbanked populations access to digital finance.

Supply Chain Transparency: Tracks goods from origin to consumer.

Identity Management: Securely stores and verifies digital identities.

Cross-Border Efficiency: Facilitates instant, low-cost global payments.

The Potential of DLT/Blockchain in the Financial Ecosystem

The financial sector stands to gain immensely from blockchain through:

    check
  1. Instant Settlements: Reduces transaction times from days to seconds.
  2. check
  3. Cost Reduction: Lowers fees for remittances, payments, and compliance.
  4. check
  5. Interoperability: Bridges banks, mobile money, and crypto networks.
  6. check
  7. Regulatory Compliance: Automates KYC/AML with auditable trails.
  8. check
  9. Tokenization: Unlocks liquidity for assets like real estate or commodities.
abstract
Was this page helpful?