Bitcoin Blockchain And DLT - An Analogy

I've also received questions on whether or not the Bitcoin blockchain and distributed ledger technology have anything in common. Let's use another analogy to answer this question. The Bitcoin Blockchain and Distributed Ledger Technology synonymous to "Google" and "Search Engine". Google is a specific type of Search Engine. Similarly, the Bitcoin blockchain is a specific type of distributed ledger technology. Bitcoin IS a Distributed Ledger Technology (DLT). Remember, in the previous section we discussed how a blockchain is a sub-category of a DLT. There are many types of DLTs; and blockchains are only one of them. Similarly, there are many types of blockchains; and the bitcoin blockchain is just one of them.

What is a DLT?

So what exactly is a DLT ? Again, I will attempt to make this as easy to understand as possible. A DLT – Distributed Ledger Technology – simply distributes information to multiple computers. These computers could be spread across the world. The primary aim is to reduce the risk of central storage. Distributed Ledger Technology is the umbrella term to describe any system that distributes data across multiple sites. There are several types of DLTs.

What is A DLT?

A DLT (distributed ledger technology) is simply a fancy way of saying,

“A database that is spread across several sites“



“How” that data is distributed, structured and “agreed upon” (consensus ) will dictate the TYPE of DLT. Kind of like how the shape, taste, colour etc dictates the TYPE of Fruit (to us non-fruit experts, at least) ​

​Al blockchains are DLTs.

But not all DLTs are Blockchains

A Blockchain is a type of DLT that organises its data in a “chain of blocks”. Each block encompasses a bunch of data that is verified & validated and then chained to the next block. Hence the term “blockchain”. This data – in the form of chained “blocks” – is distributed to everyone in the network. That’s how a Blockchain type of DLT is typically implemented. Other DLT types may choose to implement differently. Radix, Corda and IOTA are all different types of implementations of DLTs. None of which are Blockchains.

Blockchain vs Databases