Mixin Network Technology: Distributed Ledger Technology vs. Blockchain
The term “Distributed ledger technology” and “Blockchain” are often used interchangeably, but they aren’t the same. There are slight differences between these two technologies.
Confusion and retreat from public life are results of improper knowledge of either of these technologies. New technologies can easily become fads in this digital age, and as you are aware, fads don't stick around for very long. However, both DLT and blockchain are anticipated to revolutionize the future.
Distributed ledgers and blockchain technologies, despite their focus on decentralization, are distinctive in a number of ways. In fact, this is the main reason why people frequently mix up these two technologies. One thing is certain, though: they are and will change numerous industries, especially the finance sector.
What is distributed ledger technology (DLT)?
Distributed Ledger Technology is referred to as DLT. A "shared ledger" or "distributed ledger" are other names for it. It is a digital system that enables users and other systems to log asset-related transactions. A distributed ledger technology keeps the data simultaneously at various places.
DLT lacks a centralized location to store data, in contrast to traditional databases. This sets it apart from a traditional database. Better security, transparency, and trust are also provided by the decentralization feature to its users.
The procedure is actually fairly simple. Nodes will attempt to use the consensus algorithm or voting to confirm the transaction. However, the rules of that ledger will determine which nodes have voting rights or participation. As a result, sometimes all nodes can participate and other times only a few nodes will. All nodes may obtain the updated status once all nodes have given the go-ahead for the transaction to be recorded on the ledger.
What is blockchain?
Blockchain, also known as distributed ledger technology (DLT), makes the past of any digital asset transparent and unchangeable through the use of a decentralized network and cryptographic hashing. Although DLT was once thought to be the parent of blockchain, the name of the technology has recently become more well-known than DLT.
However, many developers are now trying to break-out of the blockchain shadow. That’s why people are more than eager to know the difference between blockchain and distributed ledger technology.
A blockchain is a digital ledger or database where encrypted blocks of digital asset data are stored and chained together, forming a chronological single-source-of-truth for the data.
Digital assets are distributed, not copied or transferred.
Digital assets are decentralized, allowing for real-time accessibility, transparency and governance amongst more than one party.
Blockchain ledgers are transparent — any changes made are documented, preserving integrity and trust.
Blockchain ledgers are public and constructed with inherent security measures, making it a prime technology for almost every sector.
What is the difference between blockchain and DLT?
A broad term used to describe technologies that store, disseminate, and make it easier for users to exchange value securely or openly is "distributed ledger technology."
For almost a decade, Blockchain was the only Distributed Ledger Technology and was completely operational. This probably made people believe that it is, was, and will always be the only type of DLT, allowing people to interchange the terms.
Similar to how the word "auto" goes under the umbrella term "vehicles" and "Satoshi Nakamoto" fits under "geniuses," blockchain is a subclass of DLT.
Blocks of data make up a blockchain. The true data structure for distributed ledgers is not this one. Simply put, a distributed ledger is a database that is dispersed among numerous nodes. In each ledger, you may, however, display this information in a variety of ways.
In blockchain technology, you can find all blocks in a particular sequence. Distributed ledgers do not require a specific sequence of data. This sequence of blocks is what makes blockchain different from any other DLT.
It is not necessary to have tokens or any other form of money on the network while using distributed ledger technology. Only when you want to prevent spamming and anti-spam detection is required will you find the necessity to employ tokens. Anyone is able to operate a node on the blockchain. Running a full node, however, entails managing a sizable network, which could be challenging. There is typically some kind of token economy.
Why compare distributed ledger and blockchain? Does it make sense?
The advantage of blockchain technology vs distributed ledger technology is that it is amenable to innovation and new ideas. This technology is still in its infancy in practical fields. The cryptocurrency industry consistently generates initiatives that are, to put it mildly, pretty interesting.
Although DLT is the ancestor of blockchain, it is crucial for the general public, developers, and proponents of these technologies to be able to distinguish between the two. The finest example for this is Bitcoin because it was an open-source project that inspired the development of numerous other projects like Ethereum, Litecoin, and more.
Many projects have stuck to the principles of DLTs and ditched the traditional blockchain concepts. These include Mixin Network.
About Mixin Network
Mixin Network is an open-source, lightning-fast, and decentralized Web3 platform to bring speed and scalability to the blockchain. Mixin allows blockchains to gain millions of TPS, sub-second final confirmation, zero transaction fee, enhanced privacy and unlimited extensibility.
Mixin Network is a PoS network with 38 full nodes. As a wallet solution, it is currently supporting 44 public blockchains including Bitcoin, Ethereum, Avalanche, Polkadot, etc. The total assets on the network have been over 1 billion US Dollars. Mixin is also a full-featured financial platform with functions of AMM, aggregating trade, pending orders on Exchange platforms, unbiased stable currency, etc. Mixin Network is dedicated to providing users with a decentralized blockchain infrastructure that always puts security, privacy, and decentralization first.
The information contained in this article is for informational purposes only and does not constitute financial, investment, or other professional advice. The views expressed in this article are those of the author and do not necessarily represent the views of the company or organization they work for or Pando. Any investment decisions made by the reader should be made after consulting with their own financial advisor and conducting their own research. The author and the company or organization they work for and Pando will not be liable for any financial losses incurred as a result of reliance on the information contained in this article.