Cryptocurrency Exchange Distributed Ledger Technology: The "Digital Collaboration Foundation" in the Web3 Era

Redefining Data Collaboration Methods

Imagine a notebook maintained collaboratively by hundreds of people, where any modification is visible to everyone and cannot be tampered with — this is the core logic of Distributed Ledger Technology (DLT). In the traditional internet, data is stored on a company’s central server, whereas DLT enables each participant to become a data custodian, ensuring data synchronization and security through encryption technology. This innovation makes cross-border payments no longer reliant on banking systems, and medical data can be shared across hospitals while protecting privacy.

Four Core Operating Principles

Decentralized Network Architecture

In a DLT network, each node (such as a personal computer or server) holds a complete copy of the ledger. For example, when a clothing brand uses DLT to track raw materials, all data from cotton growers to garment retailers are synchronized in real-time, eliminating the risk of lost paper documents in traditional supply chains.

Consensus Decision-Making Mechanism

The system reaches data consistency through algorithms similar to “voting” (such as Proof of Stake PoS). For instance, in a logistics company’s DLT network with 100 nodes, when 70 nodes verify that a shipment has arrived, the record is permanently stored, preventing malicious actions by a single node.

Cryptographic Security System

Each transaction is transformed into a 256-bit encrypted fingerprint (hash value), where even minor changes will alter the fingerprint. Suppose a student’s diploma is stored on DLT; employers only need to compare hash values to verify authenticity, without contacting the issuing authority.

Smart Contract Automation

When logistics information shows that goods have arrived at the port, DLT automatically triggers the payment of the letter of credit, reducing the traditional manual review process from 3 days to 10 minutes. This procedural automation significantly lowers transaction friction costs.

Beyond Blockchain: The Spectrum of Technologies

Blockchain, as the star branch of DLT, uses a chained data structure suitable for scenarios requiring high security (such as Bitcoin transactions). Other forms of DLT are more flexible: Directed Acyclic Graph (DAG) technology allows parallel accounting, enabling IoT devices to process tens of thousands of data points per second; hybrid DLT in healthcare can set hierarchical permissions, with primary physicians accessing full medical records, while pharmacies only see medication history.

Ongoing Industry Revolutions

Food Traceability: Norwegian salmon farmers record over 200 data points, including fry release and feed ratios, on DLT, allowing consumers to scan QR codes and trace back to specific sea areas.

Carbon Trading Market: Corporate carbon emission data are uploaded to the chain in real-time, enabling government regulators and exchanges to access trustworthy data simultaneously.

Digital Identity: Estonia’s citizen DLT identity system integrates 146 services such as healthcare and tax payments, saving an average of €120 million annually in administrative costs.

Copyright Protection: When content creators upload their work, timestamps are automatically generated, preventing infringers from forging initial publication evidence.

Technological Limitations and Breakthrough Directions

Currently, DLT networks are still limited by consensus mechanisms; for example, Visa processes 24,000 transactions per second, a performance that mainstream DLTs have yet to surpass. However, innovations such as sharding (dividing the network into multiple parallel processing units) and zero-knowledge proofs (verifying information authenticity without revealing content) are opening up the possibility of achieving millions of TPS (transactions per second).

This technology is reshaping the fundamental rules of the digital economy. When every participant can verify the truth equally, and trust no longer depends on authoritative institutions, we are not only witnessing a technological upgrade but a paradigm shift in human collaboration. Understanding the essence of DLT is key to grasping the most fundamental transformation of productive relationships in the Web3 era. **$DOGE **$VELODROME