Distributed Ledger Technology (DLT): Introduction

Abstract

Distributed ledger technology is attracting the attention of the financial sector, both owing to its use in transactions with crypto-assets and to the proliferation of initiatives which have the potential to increase the efficiency, transparency, speed and resilience of processes underlying financial transactions. This article aims to introduce this technology, describing a series of basic issues surrounding it and attempting to identify opportunities and intrinsic limitations. Additionally, it addresses possible applications in the financial sector and outlines some of the main challenges which its use poses for the authorities.

Keywords: DLT, distributed ledgers, bitcoin, crypto-assets, cryptography, innovation, technology

JEL Classification: O31, O33