How do blockchain and distributed ledger technology work together?

Blockchain and distributed ledger technology are like two buddies that often work together. Think of blockchain as a special kind of database, similar to a distributed database. When data in this database changes, everyone in the computer network sees the update.

What is a distributed ledger?

A distributed ledger is a database that is decentralized, i.e., distributed across several computers or nodes. In this technology. Every node will maintain the ledger, and if any data changes happen, the ledger will get updated. The updating takes place independently at each node. All the nodes have equal status in terms of authority.

What is the difference between DLT and blockchain?

Blockchain differs from DLTs in terms of architecture; however, the idea is the same. These technologies have become so popular because of decentralization. There is a consensus between the decentralization and digital currency enthusiasts that DLT can solve many of the existing problems in the financial industry.