DLT

Definition ∞ DLT, or Distributed Ledger Technology, refers to a decentralized database maintained across many different network participants. Unlike traditional centralized databases, DLT records and validates transactions across a network of independent computers, ensuring data integrity and transparency. Blockchain is a specific type of DLT that organizes data into blocks linked cryptographically. This technology supports various applications beyond cryptocurrencies, including supply chain management and digital identity.
Context ∞ DLT is a constant subject in financial technology news, particularly regarding its potential to revolutionize banking, trade finance, and cross-border payments. Regulatory bodies worldwide are actively studying DLT for its implications on market infrastructure and oversight. Discussions often highlight its benefits in reducing intermediaries and enhancing operational efficiencies across industries.