Distributed ledger technology (DLT) works by maintaining a decentralized database that records transactions across multiple locations or nodes simultaneously. Each node has access to the complete ledger, ensuring that all participants have a consistent view of the data. Transactions are secured through cryptography and validated by consensus mechanisms, making it difficult for anyone to alter historical records. DLT enhances transparency, reduces the risk of fraud, and minimizes reliance on central authorities. Its applications go beyond cryptocurrency, aiding in sectors such as supply chain management, finance, and identity verification.