A distributed ledger is a database that is consensually shared and synchronized across multiple sites, institutions, or geographies, accessible by multiple people. It allows transactions to have public "witnesses". The participant at each node of the network can access the recordings shared across that network and can own an identical copy of it. Any changes or additions made to the ledger are reflected and copied to all participants in a matter of seconds or minutes.
Key Things To Notice[change | change source]
- A distributed ledger is a database that is synchronized and accessible across different sites and geographies by multiple participants.
- The need for a central authority to keep a check against manipulation is eliminated by the use of a distributed ledger.
- Underlying distributed ledgers is the same technology that is used by blockchain, which bitcoin uses as its distributed ledger.
- A distributed ledger can be described as a ledger of any transactions or contracts maintained in decentralized form across different locations and people.
- Cyber attacks and financial fraud are reduced by the use of distributed ledgers.