DLT vs Blockchain: What’s the Real Difference and Why It Matters

When people talk about DLT, Distributed Ledger Technology is a system for recording transactions across multiple computers without a central authority. Also known as distributed ledger technology, it’s the foundation behind most modern crypto systems. But here’s the catch: blockchain, a specific type of DLT where data is grouped into chained blocks and secured with cryptography is just one way to build a distributed ledger. Not all DLTs use blocks. Not all use chains. And not all are public. That’s why calling every DLT a blockchain is like calling every vehicle a Tesla.

Think of DLT, Distributed Ledger Technology is a system for recording transactions across multiple computers without a central authority as the broad category — like "fruit." blockchain, a specific type of DLT where data is grouped into chained blocks and secured with cryptography is the apple. You’ve got other types too: hashgraph, directed acyclic graphs (DAGs), and consortium ledgers. Each has different rules for how data gets added, who can validate it, and how fast it runs. That’s why some DLTs are used in supply chains (like IBM’s Hyperledger), while others — like Bitcoin — are built for open, permissionless money. The blockchain you hear about in crypto news is just one flavor, designed to be slow, secure, and decentralized. But most enterprise DLTs? They’re faster, private, and controlled by a group — not the public.

Why does this matter to you? Because if you’re holding crypto, using a DEX, or even just reading about tokenized assets, you’re interacting with systems that might not even use a blockchain. Some airdrops, like the POAP, Proof of Attendance Protocol is a blockchain-based digital badge system that verifies event participation, rely on Ethereum’s blockchain. Others, like private trade ledgers used in tokenized securities, run on permissioned DLTs with no public blocks at all. Even the MiCA regulations, MiCA is the EU’s comprehensive framework for crypto asset service providers, requiring compliance with licensing and transparency rules don’t just target blockchain — they regulate all DLT-based financial services. And when you see a project claiming to be "blockchain-powered" but hiding who controls the nodes? That’s often a DLT with a central gatekeeper, not a true decentralized system.

Understanding this difference helps you spot the real innovations from the buzzwords. A DLT can be faster, cheaper, and more efficient than a blockchain — if you don’t need public trust. But if you’re storing value or verifying identity without a middleman, you probably still want a blockchain. The posts below dive into exactly this: how DLT shapes crypto exchanges like KyberSwap and Huckleberry, why blockchain voting systems work differently than private ledgers, and how tools like POAPs and security tokens rely on the right kind of distributed ledger for their use case. You’ll see real examples of what works, what fails, and why the tech behind your assets isn’t always what it claims to be.