What is Distributed Ledger?
A computerized system for tracking asset transactions called distributed ledger technology (DLT) allows for the simultaneous recording of transactions and their associated information in numerous locations. Distributed ledgers lack a central data store and management features, in contrast to conventional databases.
- A sort of database that is dispersed across numerous network nodes is a distributed ledger. It is a decentralized system that makes it possible to record and retain transactions safely and openly without the aid of a centralized body or middleman.
- It is practically hard to tamper with or change the data recorded in distributed ledgers because they use cryptographic methods to maintain the validity and integrity of the data. Because of this, they are especially helpful for documenting financial transactions, digital assets, and other kinds of data that demand a high level of security and transparency.
- There are other forms of distributed ledgers with various architecture and methods, but the blockchain is a particular version that employs a chain of blocks to record transactions. Directed acyclic graphs (DAGs) and hashgraph are two examples.
What is Ledger in Cryptocurrency?
The ledger is the book in which the user’s transactions on the network are recorded. The ledger is like a book where everything is recorded to maintain security, privacy, and transparency in the network. It is shared among all the users on the network.