This chapter explores the transformative potential of Distributed Ledger Technology (DLT) for carbon markets. It aims to provide readers with a nuanced understanding of DLT's fundamental concepts, its diverse applications in enhancing carbon market integrity and efficiency, and the critical challenges that must be addressed for its successful adoption. We will examine how DLT can address persistent issues such as transparency, double counting, and inefficiencies in the current carbon market structure. This chapter will delve into the technical underpinnings of DLT, its specific functionalities relevant to carbon assets, key digital terms, and a realistic assessment of its benefits and limitations. Ultimately, it seeks to equip market participants, policymakers, and technology developers with the foundational knowledge to navigate and leverage DLT in the evolving landscape of carbon finance.