A database that is shared, replicated, and synchronized across multiple locations or participants.
What is a Distributed Ledger?
A distributed ledger is a database that is consensually shared, replicated, and synchronized across multiple sites, institutions, or geographies. Unlike a centralized database, there is no single administrator or central storage.
How Distributed Ledgers Work
Every participant (node) in the network holds a copy of the ledger. Changes are agreed upon through consensus mechanisms. Once recorded, entries are cryptographically secured and difficult to alter. Blockchain is the most well-known type of distributed ledger.
Why Distributed Ledgers Matter
They eliminate single points of failure, increase transparency, reduce the need for intermediaries, and enable trustless transactions between parties who don't know each other.
Summary
A distributed ledger is a shared, synchronized database across multiple participants, providing the foundation for blockchain technology and trustless transactions.
