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Definition DLTDistributed ledger technologyShared ledger

Distributed Ledger

A database kept in identical copies by many independent operators and updated by an agreed rule rather than by one owner.

The defining properties are replication and a deterministic update rule: every operator applies the same transactions in the same order and arrives at the same result, so no single participant can quietly rewrite a record. A blockchain is one design for a distributed ledger, but not the only one; some systems arrange records in a directed acyclic graph, and permissioned ledgers such as Hyperledger Fabric or R3 Corda restrict participation to identified institutions. The wider term is common in banking and regulatory documents, where the concern is shared record keeping rather than a public asset. Readers meet it in central bank research, settlement pilots, and standards work.

In practice

Interbank settlement pilots have used permissioned distributed ledgers where each participating bank runs a node and membership is controlled by the operator of the network.

The common misunderstanding

Distributed does not mean public or permissionless; many distributed ledgers are operated by a closed set of known institutions that can change the rules together.

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Related terms

Blockchain A shared record of transactions, copied across many computers, where new entries are grouped into…
Consensus Mechanism The rule set that lets many independent computers agree on one shared history without trusting each…
Node A computer running blockchain software that stores the chain, checks new blocks against the rules,…
State The current record of who owns what and what every contract stores, produced by applying all past…
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