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The Difference Between Blockchain and Distributed Ledger

How Blockchain and Distributed Ledger are Different?

By Jason WhitePublished about a year ago 5 min read

Are blockchain and distributed ledger the same in terms of technological applications? The answer is No.

We live in a digital era dominated by sound bites and jargon. Even complicated technology solutions are simplified to five words or fewer in this day and age. As a result, we're seeing more crafty businesses try to cash in on the so-called crypto craze. Some are even renaming themselves with the word "blockchain" in their name.

Using buzzwords like blockchain technology to attract investment would, predictably, only yield short-term rewards. Ironically, such actions are to blame for the technology's branding troubles. One of the reasons why many people are apprehensive of blockchain software development is because of this. Meanwhile, recent trends indicate that distributed ledger technology can deliver real value and benefits without the hype.

With the rise of Bitcoin and other cryptocurrencies, blockchain has been in the news virtually every day. Distributed ledgers, on the other hand, have not garnered the same level of attention. When words like distributed ledger technology and blockchain software development are used together, it typically leads to more questions than answers. This is all before you add Bitcoin to the mix to further muddle the waters.

The terms "blockchain" and "distributed ledger technology" are frequently used interchangeably. It's simple to see why people would think that way. Now is the time to delve deeper and discover the truth behind the buzzwords. Despite the fact that these phrases have gotten entangled in recent years, it is critical to separate the two.

What is Blockchain?

Without the need for an intermediary to provide assurance, and without the need to reconcile data later, blockchain technology allows everyone involved in a transaction to know exactly what happened, when it happened, and validate that other parties are seeing the same thing.

A blockchain is essentially a list of records that is constantly increasing. Its append-only structure only permits data to be added to the database; it is difficult to change or delete previously input data on prior blocks. As a result, blockchain software development is ideal for businesses including documenting events, maintaining records, processing transactions, tracing assets, and voting.

The names "blockchain" and "DLT" are frequently interchanged, and understanding blockchain requires understanding Distributed Ledger Technology (DLT), the framework that supports it.

What is a Distributed Ledger?

A distributed ledger is a database which can be accessed from different platforms that can be accessed by multiple users. Most businesses, however, continue to rely on a centralised database with a permanent location. A distributed ledger, unlike a centralised database, is decentralised, which eliminates the need for a central authority or intermediary to process, validate, or authenticate transactions. Furthermore, these data will be entered into the ledger only once all parties have reached an agreement.

The advantage of blockchain technology over distributed ledger technology is that it is more open to new ideas and innovation. We are only seeing the beginnings of this technology in practical applications. To say the least, the crypto realm produces ideas that are quite interesting on a daily basis.

Even though blockchain is derived from distributed ledger technology (DLT), it is critical for the general public, developers, and believers in these technologies to be able to distinguish between the two. Bitcoin is the best example because it was an open-source project that spawned a slew of comparable projects, including Ethereum, Litecoin, and others.

Differences Between The Two Disruptive Technologies

Blockchain can be seen as trending in the market. To help you better grasp the DLT vs blockchain technology comparison, below is a breakdown of some of the distinctive properties of blockchain and distributed ledgers.

Block Structure

A blockchain is made up of blocks of data. However, this is not the original distributed ledger data structure. This is due to the fact that a distributed ledger is simply a database that is distributed over multiple nodes. In each ledger, though, you can represent this information in a variety of ways.


You can find all the blocks in a specific sequence using blockchain technology. A precise data sequence is not required for distributed ledgers. This block sequence is what distinguishes blockchain from other distributed ledger technologies.

Proof of Work

The proof of work mechanism is used by blockchains in the majority of scenarios. Other systems do exist, but they often consume electricity. On the other hand, distributed ledgers do not require this form of consensus, making them more scalable. Blockchain is a subset of distributed ledger technology that extends beyond the capabilities of traditional DLTs. Proof of work makes a significant difference between distributed ledger and blockchain.


A distributed ledger technology does not require tokens or any form of cash. To block and identify spam, however, tokens may be required. In blockchain technology, anyone can run a node. Running a complete node, on the other hand, necessitates a large network that can be challenging to administer. Furthermore, token economies are common, and they play an important role in blockchain technology. Modern blockchain technology, on the other hand, is looking for a way out of the bitcoin shadow.

Real-Life Implementations

When it comes to comprehending the distinctions between blockchain and distributed ledger, implementation is crucial. Because blockchain is so popular, it has a lot of real-world applications, and more are being developed all the time. Because many businesses are adopting blockchain technology and gradually integrating it into their systems, you'll find huge names like Amazon, IBM, and others offering good blockchain as a service solutions.

Developers, on the other hand, have only lately begun to delve into the distributed ledger technology's core. Although there are many different types of DLTs in the computer sector, there are just a few real-world applications. They are, however, still in development, and we will begin to see real-world applications very soon.


In a word, Blockchain is a dynamic distributed ledger technology based on the concept of a block chain, with each block being a digital record of a batch of validated digital transactions. A Blockchain technology's structure, organisation and development, are all decentralised. On the other hand, distributed ledger refers to any technologies that strive to make it easier to connect to a shared database that serves as a transaction validation and consensus record. Because distributed ledger technology is decentralised and transparent, it is a game changer.

Hence, there is no doubt that these technologies will literally skyrocket your business returns if investments in technological advancements are done mindfully. In case you are looking for help regarding Blockchain or the Distributed Ledger technology, you can reach out to any expert software development company for mindful guidance.


About the Creator

Jason White

Holding a Bachelor’s degree in Technology and 2 years of work experience in a mobile app development company, Jason is focused on making technology digestible to all.

Reader insights

Nice work

Very well written. Keep up the good work!

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