Distributed Ledger Tchnology (DLT)A ledger is a type of database, in which debit- and credit- mutations are stored. In bookkeeping this is a well-known way of centralising data of a specific kind.
A distributed ledger works like a database, it is used to accurately and securely store information of all kinds using cryotography (data-scrambling). What makes a distributed ledger differ from classical databases (ledgers) is that it is distributed amongst many users, who all have the same copy.
This makes it very hard for an attacker to change the contents, because it then needs to be changed on all occasions the distributed ledger is stored.
Companies like Bitcoins make use of a distributed ledger.
All the information on the ledger can be accessed using keys and cryptographic signatures. Once the information is stored, it becomes an immutable database because a central authority is not needed to authorize or validate any transactions.
Distributed ledgers reduce operational inefficiencies, speed up the amount of time a transaction takes to complete and are automated and therefore function 24/7, all of which reduce overall costs for the entities that use them. They also provide for an easy flow of information, which makes an audit trail easy to follow, this helps remove the possibility of fraud occurring on the financial books of, for instance, a company. The reduction in the use of paper is also a benefit to the environment.