A distributed ledger is a decentralized network that records transactions across multiple locations simultaneously, ensuring transparency and security.

Distributed Ledger Explained

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,” thereby making a cyberattack more difficult.

Understanding Distributed Ledgers

Distributed ledger technology (DLT) involves a digital system for recording the transaction of assets in which the transactions and their details are recorded in multiple places at the same time. Unlike traditional databases, DLT has no central data store or administration functionality.

Key Features of Distributed Ledgers

Benefits of Using Distributed Ledgers

Despite the benefits, distributed ledgers face challenges such as complexity in implementation, scalability issues, and high energy consumption for certain ledgers like Bitcoin.

Distributed Ledger vs. Blockchain

While often confused, blockchain is a type of DLT. Blockchains organize data into blocks and then chain them together. However, not all DLTs structure their data in this way.