Distributed Ledger

A distributed ledger is a record of data — such as transactions — that is shared and kept in sync across many independent computers, instead of living in a single central database.

How it works

Each participant holds a copy of the ledger, and a consensus process keeps every copy consistent as new entries are added. A blockchain is the best-known type of distributed ledger, organising data into a chain of cryptographically linked blocks, but other structures exist too. The defining feature is that no single party controls the master copy.

Why it matters

Distributing the ledger removes the single point of failure and control found in traditional databases, making records harder to tamper with or censor. This is the core idea that makes cryptocurrencies and many enterprise blockchain projects possible.

Example

Every full node on a network like Bitcoin keeps its own copy of the distributed ledger and checks new transactions against it.