Distributed Ledger

A Distributed Ledger in cryptocurrency refers to a decentralized database that is maintained across multiple locations or participants in a network. Unlike traditional centralized ledgers, where a single authority or entity controls and manages the database, distributed ledgers are distributed among all participants, each of whom maintains a copy of the entire ledger. These ledgers are often based on blockchain technology, where transactions are recorded in blocks that are linked together in a chronological chain, forming an immutable record of transactions.

Distributed ledgers provide transparency, security, and resilience, as they are resistant to tampering and single points of failure. They play a crucial role in enabling peer-to-peer transactions and removing the need for intermediaries in cryptocurrency networks.