Encyclopedia
Bridge: Definition, Types, and Security Considerations in Cross-Chain DLT
Definition
A bridge in distributed ledger technology is a protocol or infrastructure component that enables the transfer of assets, data, or messages between …
Byzantine Fault Tolerance: Definition, Algorithms, and Significance for DLT Consensus
Definition
Byzantine fault tolerance (BFT) is the property of a distributed system that enables it to continue operating correctly and reaching consensus even …
Consensus Mechanism: Definition, Types, and Role in Distributed Ledger Technology
Definition
A consensus mechanism is the process by which participants in a distributed ledger network agree on the current state of the ledger and the validity …
Finality: Definition, Types, and Legal Significance in DLT Settlement
Definition
Finality in distributed ledger technology refers to the assurance that a transaction, once recorded on the ledger, cannot be reversed, altered, or …
Hash Function: Definition, Properties, and Role in Distributed Ledger Security
Definition
A cryptographic hash function is a mathematical algorithm that takes an input of arbitrary length and produces a fixed-length output — the hash …
Merkle Tree: Definition, Structure, and Application in Distributed Ledger Technology
Definition
A Merkle tree (also known as a hash tree) is a data structure in which every leaf node contains the cryptographic hash of a data block, and every …
Rollup: Definition, Types, and Role in DLT Scalability
Definition
A rollup is a Layer 2 scaling solution that executes transactions outside the main blockchain (Layer 1) while posting transaction data or validity …
Shard: Definition, Sharding Architecture, and Implications for DLT Scalability
Definition
A shard is a partition of a distributed ledger network that processes and stores a subset of the network’s total transactions and state. …
Distributed Ledger Technology (DLT): Definition and Types
Definition
A distributed ledger is a database that is shared, replicated, and synchronised across multiple nodes — computers operated by different participants …
Tokenisation: Definition and Asset Types
Definition
Tokenisation is the process of creating a digital representation of an asset — or of rights in an asset — on a distributed ledger. The digital …