DLT (Distributed Ledger Technology) is a type of digital database that enables secure and decentralised storage and sharing of data across a network of computers. The process of using DLT involves several key steps:
- Creation of a new block: The process begins when a new block of data is created. This block contains a set of transactions or other data, which is verified and confirmed by the network.
- Verification and validation: Once the block is created, it is broadcast to the network of nodes, where it is verified and validated by multiple participants. This process ensures that the data is accurate and authentic.
- Addition to the ledger: Once the block is verified and validated, it is added to the distributed ledger, which is a shared database that is stored across the network of nodes. The ledger is updated in real-time and is visible to all participants.
- Consensus mechanism: DLT uses a consensus mechanism to ensure that all participants onthe network agree on the state of the ledger. This mechanism can vary depending on the type of DLT, but commonly used mechanisms include proof-of-work and proof-of-stake.
- Security: DLT uses cryptography and other security measures to ensure that the data on the ledger is secure and tamper-proof. This ensures that the data remains accurate and cannot be altered or manipulated by unauthorised parties.
Overall, the DLT process enables secure and transparent storage and sharing of data across a network of computers, without the need for a central authority or intermediary.
Here’s a brief introduction to each term related to DLT
- Entity ID: An entity ID is a unique identifier assigned to an object or concept within a specific context, such as a database or software system. The purpose of an entity ID is to distinguish one entity from another and to enable efficient retrieval and manipulation of data.
- Header ID: A header ID is a unique identifier assigned to a message header in a communication protocol. It is used to track and manage messages as they are transmitted between different systems and applications.
- Template: A template is a pre-designed format or structure that can be used as a basis for creating documents, reports, or other types of content. Templates can save time and ensure consistency in the formatting and layout of documents.
