DLT vs Blockchain: What's the Difference
Dec, 22 2025
When people talk about blockchain, they often mean Distributed Ledger Technology (DLT). But here’s the truth: blockchain is just one kind of DLT. Not all DLTs are blockchains. And that difference matters-especially if you're building something real, not just talking about crypto.
What Exactly Is DLT?
Think of DLT as a shared digital ledger. It’s like a Google Sheet that everyone on a team can edit at the same time-but no one can secretly change what’s already there. Every participant holds a copy. Every update is verified by the group. No bank, no government, no single company controls it. This isn’t new. BitTorrent used similar ideas back in 2001 to share files without a central server. Today, DLT is used in supply chains, banking, and even voting systems. The key point? It doesn’t have to use blocks. It doesn’t have to be chained. It just needs to be distributed and tamper-resistant. Real-world examples? R3’s Corda, Hyperledger Fabric, and IOTA’s Tangle. These are all DLTs. None of them use blocks. Yet they’re trusted by banks, logistics firms, and governments.What Makes Blockchain Different?
Blockchain is a specific way to build a DLT. It forces data into blocks. Each block holds a batch of transactions. Then it links to the next block using a cryptographic hash-like a digital fingerprint of the previous block. Change one transaction? You break the chain. That’s why it’s called “immutable.” Bitcoin was the first blockchain. It needed to work without trust. So it added Proof-of-Work: miners compete to solve hard math puzzles. It’s slow. It uses massive energy. But it works even if you don’t know who’s on the other side. That’s the core of blockchain: trustless environments. You don’t need to know or trust the other party. The system enforces honesty through code and math. Compare that to a bank. You trust the bank because it’s a known institution. With blockchain, you trust the algorithm. That’s powerful-but not always necessary.Key Differences at a Glance
| Feature | DLT (General) | Blockchain (Specific) |
|---|---|---|
| Data Structure | Can be graph-based, DAG, or other forms | Strictly sequential blocks in a chain |
| Consensus Mechanism | Can use PBFT, Raft, or no consensus at all | Typically uses PoW, PoS, or variants |
| Energy Use | Low to moderate (PBFT uses 99% less energy than PoW) | High (Bitcoin: ~1,544 kWh per transaction) |
| Transaction Speed | Up to 10,000+ TPS (e.g., Hedera Hashgraph) | 7-30 TPS (Bitcoin/Ethereum pre-merge) |
| Token Required? | No-enterprise DLTs often run without tokens | Yes-gas fees, mining rewards, staking |
| Trust Model | Permissioned: participants are known and vetted | Permissionless: anyone can join anonymously |
| Common Use Cases | Banking settlements, supply chain, CBDCs | Cryptocurrencies, NFTs, public DeFi apps |
Why Does This Matter for Businesses?
If you’re a bank, you don’t need Bitcoin-style decentralization. You need speed, privacy, and compliance. That’s why 68% of banking pilots use non-blockchain DLTs like Hyperledger Fabric or R3 Corda, according to Deloitte’s 2023 survey. Corda, for example, lets two parties transact privately. Only they see the details. No public ledger. No mining. No gas fees. Just secure, fast settlement. BBVA used it for trade finance and cut document processing time by 80%. Meanwhile, public blockchains like Ethereum are great for open apps-DeFi, NFTs, DAOs. But they’re too slow and expensive for daily banking. JPMorgan’s Quorum team found that 15-second finality times broke their high-frequency trading systems. The European Central Bank chose non-blockchain DLT for its digital euro pilot. Why? Because it needs to handle millions of transactions per second. Blockchain can’t scale that way-not yet.
Performance and Scalability: The Real Bottleneck
Let’s talk numbers. - Bitcoin: 7 transactions per second (TPS)- Ethereum (pre-Merge): 30 TPS
- Hyperledger Fabric: 4,500 TPS
- Hedera Hashgraph: 10,000+ TPS
If you’re running a national payment system, 30 TPS is a disaster. That’s less than a Visa transaction. But for peer-to-peer crypto trading? It’s fine. Energy use is another dealbreaker. Bitcoin’s annual electricity use rivals that of Argentina. PBFT-based DLTs use less than 1% of that energy. That’s not just eco-friendly-it’s economically smarter for enterprises. The Ethereum Merge in 2022 cut its energy use by 99.95%. That was huge. But even now, Ethereum can’t match the speed of permissioned DLTs. And it still needs ETH for gas.
Trust: Who Are You Dealing With?
This is the hidden divider. Blockchain assumes strangers are dishonest until proven otherwise. That’s why it’s so secure. But it’s also why it’s slow and expensive. DLT assumes participants are known and vetted. Think banks, shipping companies, government agencies. They’re not anonymous. They’re regulated. They have legal contracts. So you don’t need Proof-of-Work. You just need a reliable, fast way to sync records. Maersk’s TradeLens used Hyperledger Fabric to track shipping containers. 98 companies were on the network. No crypto. No tokens. Just real-time data sharing. That’s the power of trusted DLT.What’s the Future?
The lines are blurring. R3’s Corda 5 now supports blockchain-like chaining for audit trails. Ethereum is moving toward sharding and layer-2 solutions to scale. Some new systems combine DAGs with smart contracts. Gartner says DLT has reached the “Plateau of Productivity.” That means it’s no longer hype-it’s in use. 25% of global enterprises are already using some form of DLT. But blockchain? It’s still the face of the tech. That’s fine for crypto. But for enterprise? The future is hybrid. Use the right tool for the job. If you need open access, censorship resistance, and global trust? Blockchain.If you need speed, privacy, compliance, and low cost? DLT without blocks.
Getting Started: What Should You Learn?
Want to build something? Start here:- For blockchain: Learn Solidity, Ethereum, MetaMask, Truffle. Join Ethereum’s Discord. Build a simple token or NFT.
- For enterprise DLT: Study Hyperledger Fabric or R3 Corda. Set up a local network. Try writing a chaincode (smart contract) in Go or Java.
Common Misconceptions
- “Blockchain is the only DLT.” False. DLT is the umbrella. Blockchain is one branch.
- “DLT isn’t secure.” False. Hyperledger Fabric is used by the U.S. military and major banks.
- “All DLTs are private.” False. Some DLTs are public. But most enterprise ones are permissioned.
- “You need crypto to use DLT.” False. Corda, Fabric, and many others run without tokens.
Final Thought
Don’t let marketing confuse you. Blockchain isn’t the future of everything. It’s the future of open, trustless systems. DLT is the future of efficient, regulated, high-speed record-keeping. The best companies aren’t choosing one over the other. They’re picking the right tool. And that’s the real lesson.Is blockchain the same as DLT?
No. Blockchain is a type of DLT, but not all DLTs are blockchains. DLT is the broader category-like “vehicle.” Blockchain is a specific kind-like “sedan.” You can have other types of DLT, like Hashgraph or Tangle, that don’t use blocks or chains.
Can DLT work without cryptocurrency?
Yes. Many enterprise DLT systems like Hyperledger Fabric and R3 Corda don’t use tokens or crypto at all. They rely on permissioned access and traditional authentication. Crypto is only needed if you’re building a public, trustless system like Bitcoin or Ethereum.
Why do banks prefer DLT over blockchain?
Banks need speed, privacy, and regulatory compliance. Blockchain’s public nature and slow transaction speeds (7-30 TPS) don’t fit. DLTs like Corda and Fabric can process thousands of transactions per second, keep data private between parties, and meet financial regulations-all without crypto.
Which is more energy-efficient: DLT or blockchain?
DLT systems using Practical Byzantine Fault Tolerance (PBFT) are far more energy-efficient than Proof-of-Work blockchains. Bitcoin uses about 1,544 kWh per transaction. PBFT-based DLTs use less than 1% of that. Even Ethereum after its Merge is still slower and less efficient than enterprise DLTs for high-volume use.
What’s the biggest mistake people make when comparing DLT and blockchain?
They treat them as interchangeable. People say “blockchain” when they mean “any distributed ledger.” That leads to bad decisions-like trying to use Bitcoin-style tech for a bank’s internal settlement system. The right tool depends on your trust model, speed needs, and whether you need public access or privacy.
Are there any real-world examples of DLT without blockchain?
Yes. The European Central Bank’s digital euro project uses a non-blockchain DLT. Maersk’s TradeLens uses Hyperledger Fabric. IBM’s Food Trust uses it too. These aren’t crypto projects-they’re supply chain and financial systems built for efficiency, not decentralization.
Will blockchain disappear as DLT becomes more popular?
No. Blockchain will keep its place in public, permissionless systems-like cryptocurrencies, NFTs, and DeFi. But in enterprise settings, non-blockchain DLTs are taking over because they’re faster, cheaper, and more compliant. The future isn’t one replacing the other-it’s using each where it fits best.