What is Distributed Ledger Technology (DLT)?
Distributed Ledger Technology (DLT) refers to a decentralised database that is consensually shared and synchronised across multiple sites, institutions, or geographies, making it accessible to multiple participants. This technology enables the creation of a robust and tamper-resistant record-keeping system, where transactions and data are verified and agreed upon by consensus among participants.
DLT's structure significantly enhances the security and integrity of data, making cyberattacks more difficult due to the distributed nature of data storage and management. It serves as the foundation for technologies that aim to implement transparent, verifiable, and secure transactions across various applications and sectors.
In the context of supply chain traceability, DLT can ensure the integrity and immutability of transaction records, enhancing transparency and trust across the supply chain. It enables secure, real-time tracking of products and materials, facilitating the verification of their authenticity, origin, and compliance with sustainability standards.
Related terms
Chain of Custody
Chain of Custody (CoC) refers to the process of documenting and verifying the sequence of custody and control over materials and products within a supply chain.
Accountability
Accountability ensures that companies can verify the integrity of their supply chains, uphold compliance with environmental and social standards, and respond to any discrepancies or issues with honesty and corrective action.
Proof of Authority
Proof of Authority (PoA) is a consensus mechanism used in secure digital ledger networks where transactions and block creation are validated by approved accounts, known as validators.