2 min readDistributed ledger technology (DLT) is most well-known for cryptocurrencies, but the technology itself can be set up in more than one way.
Public
Public DLT relies on a decentralized system of trust. Transactions occur between any two parties, from any computer, at any location. The nature of the technology allows it to be secure, and no one entity has full control over it. Public DLT is reliant on the consensus and participation of all involved, upon which the value of the system rests.
Private
Private DLT is gaining traction. In this context, DLT is used more as a database than as something to be openly traded and agreed upon. Transactional value is reliant on the private party, and the DLT structure serves as a gatekeeper for who can see which transactions and when. Private DLT is not decentralized and therefore can be controlled by the owner of the network.
Consortium
Consortium DLT is a hybrid of public and private structures. Consortium DLT relies on consensus just as public DLT does, but assigns permissions on which nodes have the authority to approve which transactions, like private DLT does. This combination allows the technology to be any combination of private or public as the consortium agrees.
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