Distributed Ledger Technology (DLT) Framework refers to the digital system that records transactions across multiple locations simultaneously. In the context of cryptocurrency, DLT is used to securely and transparently record every transaction made using the digital currency. Instead of having a centralized ledger controlled by a single entity, DLT distributes the ledger to computers or nodes within a network. Each node has a copy of the ledger, and updates are validated by multiple nodes. This ensures that the ledger remains tamper-proof and resistant to fraud.
One of the key features of DLT is its decentralized nature, which eliminates the need for intermediaries like banks or payment processors. This reduces costs, speeds up transactions, and enhances security. Additionally, DLT provides transparency as anyone can view the ledger and verify transactions. This level of transparency builds trust among participants in the network.
Overall, the DLT framework revolutionizes the way financial transactions are recorded and verified in the world of cryptocurrency, paving the way for more efficient, secure, and transparent systems.
