A Digital Ledger Technology (DLT) platform in cryptocurrency is a system that allows for the secure and transparent recording of transactions. It uses a decentralized network of computers to verify and store transaction data in a way that is tamper-proof and resistant to fraud.
DLT platforms serve as the backbone for various cryptocurrencies, enabling users to send and receive digital assets without the need for a trusted intermediary like a bank. Each transaction is recorded in a “block” of data, which is linked together in a chain known as a blockchain. This ensures that the entire transaction history is publicly available and cannot be altered without the consensus of the network.
DLT platforms commonly use cryptographic techniques to secure transactions and ensure the integrity of the network. By removing the need for a central authority to oversee transactions, DLT platforms offer increased efficiency, transparency, and lower costs compared to traditional financial systems. These platforms have the potential to revolutionize the way we exchange value and conduct business in the digital age.
