What is the Difference Between Blockchain and Distributed Ledger?

Posted by celine anderson on January 8th, 2020

In this Digital World, Our lives getting better with Blockchain And Distributed Ledger Technology. Do you Know How? The Combination of both technologies offering many numbers of benefits to various sectors like the Economic Sector, Education, Healthcare, Supply-chain and lot more. Hence this technology became a word of fire to the crypto world as well as the non-crypto world.

Even Though people have a knowledge of what is blockchain and Distributed ledger still they having confusion that both are the same. DO You Think both are the same? if Your Answer is yes then you also having a common misconception that everyone has.

Actually every Blockchain is a Distributed ledger but not every Distributed ledger is a blockchain. Yeah, This might sound like a syllogism. you might also think if blockchain comes definitely there will be a presence of distributed ledger then how it is possible for every DLt cant to be a blockchain. Don’t worry I will take you through this blog and end up with clarification.

Well, What is Distributed Ledger:

A distributed ledger is a decentralized database that exists across every node of a network among multiple participants across several locations. Each node has a copy of the information stored on the ledger, this shows the transparency level of the distributed ledger.

Here it needs no central authority to validate and authenticate transactions. Normally in Centralized ledger, there will be a central authority to overlook all your activities. Here this technology provides all your history information stored on that database.

Each and every node in the ledger gets updated whenever the data changes occur. The updating also takes place independently throughout every node.

The transaction verification will be done with a consensus algorithm or voting. The consensus is nothing but the voting and agreement on one copy of Ledger. As it is being a more transparent technology every industry is looking to it.

What is Blockchain:

Actually Blockchain is a type of Distributed Ledger, and we can take DLT is the parent technology of blockchain.

Blockchain a public ledger or a distributed database of all bitcoin transactions. It is an open-source technology and anyone can access the details at any time.

The unique feature of blockchain technology is that digital transactions and information are immutable. As it is a distributed ledger, there will be no control or central authority of records stored.

Anyone can add the data but that cannot be deleted or altered further. Usually, the blockchain stores the data in terms of blocks, and those are linked together like a chain and will be encrypted for security. Here Blockchain uses Proof of Work Mechanism to validate the transaction.

Want to more about how the Proof of Work Concept Works.

Blockchain Vs Distributed Ledger.

However, both the technology sounds the same there it has some differences.

1. A distributed ledger does not require any sequence of blocks to be formed as that of what blockchain has.
2. A consensus algorithm is essential in a Distributed ledger, but it does not need any proof work(PoW), Proof Of Stack(PoS) Concept.

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