What Is A Distributed Ledger?
A distributed ledger is a database that is shared and synced by a group of individuals across many sites, institutions, or countries.
A distributed ledger is a database that is synced and accessible by various participants across multiple sites and countries. It is a decentralized ledger that keeps track of all transactions and contracts across several places and persons. The deployment of a distributed ledger eliminates the need for a central authority to maintain a check on tampering.
Transactions on the Distributed Ledger can have public “witnesses.” Each network node’s member has access to the recordings shared throughout the network and can possess an identical copy of them. In a couple of seconds or minutes, any modifications or additions to the ledger are reflected and replicated to all participants. A distributed ledger differs from a centralized ledger, which is the type of ledger used by most businesses. Because it is a single point of failure, a centralized ledger is more vulnerable to cyber-attacks and fraud.
The usage of distributed ledgers reduces cyber-attacks and financial fraud. They are a decentralized ledger of any transactions or contracts maintained across several places and persons, obviating the need for a central authority to keep an eye on things. A central authority is not required to authorize or authenticate any transactions in this manner.
Cryptography is used to safeguard and precisely store all of the information on the ledger. The ledger can be accessed via keys and cryptographic signatures. Once the data is saved, it becomes an immutable database governed by the network’s rules.
Distributed Ledgers Example
Bitcoin is one of the most well-known distributed ledgers. It is a virtual currency that may be used to make non-reversible payments. It has lower transaction costs than those charged by traditional online payment systems.
R3coda is an open-source distributed ledger that does not use transaction blocks. It is a database that can be accessed by several persons and is shared consensually among various sites, institutions, or geographies. It enables public witnessing of any transaction.« Back to Glossary Index