Distributed Ledger Technology (DLT)
A shared database across a network, foundational to blockchain systems.
Detailed Description
Distributed Ledger Technology (DLT)
What is the main advantage of DLT over traditional databases?
The main advantage of DLT is its decentralization, which eliminates the need for a central authority and enhances transparency and security.
How does DLT ensure data integrity?
DLT ensures data integrity through immutability, meaning once data is recorded, it cannot be altered or deleted.
What are some applications of DLT in the fintech industry?
Applications of DLT in fintech include cross-border payments, trade finance, identity verification, and asset tokenization.
What challenges does DLT face?
DLT faces challenges such as scalability issues, energy consumption, regulatory uncertainty, and interoperability.
What future trends are expected for DLT?
Future trends for DLT include increased adoption by financial institutions, integration with AI, development of interoperability solutions, and a focus on sustainability.