DLT architecture refers to the fundamental design and structural components of a distributed ledger technology system. This architecture defines how data is stored, validated, and synchronized across a network of independent nodes without a central authority. It encompasses the consensus mechanism, data structure, network protocols, and the rules governing participant interaction. The design choices within a DLT architecture directly impact its scalability, security, decentralization, and privacy characteristics.
Context
Debates concerning DLT architecture often focus on the trade-offs between various design choices, such as permissioned versus permissionless networks, and their suitability for different applications. A key area of innovation involves developing modular and interoperable architectures to facilitate broader adoption and cross-chain communication. Future advancements aim to enhance the efficiency and versatility of DLT systems to support a wider array of digital asset use cases.
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