What is Distributed Ledger Technology?

The global cannabis industry is thriving, but international trade comes with hurdles: complex regulations, slow transactions, and trust gaps between buyers and sellers. Distributed Ledger Technology (DLT) is transforming these challenges, offering a secure, transparent way to streamline deals. For cannabis business owners, understanding DLT—and how it differs from blockchain—is key to staying ahead in today's dynamic market.

In this article, we'll explore what DLT is, how it compares to blockchain, and where Hedera, a leading DLT platform, fits in. We'll also highlight why this technology is critical for businesses and show how XPharms Xchange uses Hedera to simplify trades—like connecting a Thai grower with an Australian buyer.

What is Distributed Ledger Technology?

Distributed Ledger Technology (DLT) is a system for recording and sharing data across multiple computers (nodes) without a central authority. Imagine a digital ledger—a record of transactions—replicated identically across a network. When a new transaction occurs, every node updates its copy, ensuring all participants have the same, tamper-proof data.

Unlike centralized databases controlled by a single entity (like a bank), DLT is:

• Decentralized: No single owner; the ledger is shared.
• Secure: Cryptography prevents tampering.
• Transparent: Authorized users see transaction records.
• Immutable: Data, once recorded, can't be altered, creating a permanent audit trail.

DLT is the broad category for technologies that distribute data this way, and blockchain is one type of DLT—but not the only one.

Example: Thailand-to-Australia Trade

Picture a Thai cannabis grower selling 100 kilograms of CBD isolate to an Australian buyer. In a traditional system, they'd juggle banks, emails, and paperwork to track payments and shipments, risking delays or disputes. With DLT, every step—payment, license verification, delivery—can be recorded on a shared ledger. Both parties see real-time data, and regulators can audit it instantly.

Blockchain vs. DLT: What's the Difference?

While often confused, blockchain and DLT are distinct. Understanding this helps clarify Hedera's role and its value for cannabis trade.

Blockchain: A Type of DLT

Blockchain organizes data in blocks, linked in a chronological chain. Each block holds a batch of transactions, sealed with a cryptographic hash. Key traits:

• Linear Structure: Blocks are added sequentially, like pages in a book.
• Consensus Mechanisms: Networks like Bitcoin use energy-heavy methods (e.g., proof-of-work) to validate blocks.
• Public or Private: Bitcoin is public; enterprise blockchains are often permissioned.

Blockchain suits cryptocurrencies but can be slow and costly for business. Ethereum transactions, for example, take 15 seconds and cost $1–$10 in fees—not ideal for frequent cannabis trades.

DLT: The Broader Framework

DLT includes any system distributing data across nodes, encompassing blockchain and other structures like Hedera's hashgraph. Differences include:

• Flexible Structures: Non-blockchain DLTs avoid linear chains for faster processing.
• Efficient Consensus: Use lightweight methods, cutting costs.
• Business-Oriented: Designed for compliance and scalability.

All blockchains are DLTs, but not all DLTs are blockchains. Hedera's hashgraph is a DLT optimized for enterprise needs.

Where Does Hedera Fit?

Hedera is a cutting-edge DLT using a hashgraph structure, not a blockchain. Built for enterprise applications, it's fast, secure, and affordable—perfect for the cannabis industry. Here's why Hedera excels:

Hedera's Hashgraph: How It Works

Unlike blockchain's chain, Hedera's hashgraph stores transactions in a directed acyclic graph (DAG)—a web of interconnected events. When a transaction occurs:

• Nodes share it via a gossip protocol, rapidly spreading data.
• A virtual voting system confirms validity without heavy computation.
• Transactions finalize in 3–5 seconds, with no reversal risk.

This enables Hedera to process thousands of transactions per second, far surpassing Bitcoin's 7 or Ethereum's 15–30.

Hedera's Strengths

• Speed: 3–5 second finality, ideal for time-sensitive cannabis deals.
• Low Fees: $0.0001 per transaction, compared to Ethereum's $1–$10.
• Scalability: 10,000+ transactions per second, supporting busy markets.
• Security: Advanced cryptography and decentralized nodes ensure safety.
• Compliance: Immutable, auditable records suit regulated industries.
• Governance: A council of global firms (e.g., IBM, Google) adds trust.

Hedera's Smart Contract Service enables complex agreements like payment milestones or compliance checks, crucial for XPharms Xchange.

Why DLT's Matter in Today's Business Landscape

In 2025, businesses face rising demands for efficiency, transparency, and compliance. DLT addresses these needs, particularly in regulated industries like cannabis. Here's why it's critical:

1. Regulatory Compliance

Cannabis trade requires meticulous documentation:

• Thailand mandates export licenses and batch tracking.
• Australia enforces import permits and quality tests.

DLT provides:

• Automated Verification: Checks licenses before trades.
• Audit Trails: Permanent records for regulators.

2. Trust Across Borders

Trading globally—say, Thailand to Australia—requires trust. DLT ensures:

• Transparency: All parties see the same data.
• Security: Funds and records are tamper-proof.

3. Cost and Speed

Traditional systems (banks, escrow) are slow and costly. DLT:

• Cuts Fees: Saves 85–100% on transaction costs.
• Speeds Up: Settles deals in seconds.

4. Competitive Edge

Adopting DLT signals innovation, attracting partners and customers in a tech-driven market.

XPharms Xchange: Real World Use Case for DLT's

XPharms Xchange leverages the Hedera Hashgraph to connect cannabis buyers and sellers worldwide. Its smart contracts automate deals, ensure compliance, and build trust.

Distributed Ledger Technology is reshaping the cannabis industry, and XPharms Xchange is leading the way. Ready to trade smarter? Enquire for a Demo Today.

Disclaimer: This blog post reflects an analysis of common challenges within the cannabis industry and is for informational purposes only. It does not constitute legal or financial advice.