A digital ledger in cryptocurrency is essentially a record of transactions that is stored in a decentralized network. Each transaction made with a cryptocurrency is added to this ledger in a block, creating a chain of blocks known as a blockchain.
The digital ledger is distributed across multiple computers or nodes in the network, ensuring that there is no single point of failure or vulnerability. This decentralized nature of the ledger makes it secure from tampering or hacking attempts.
Transactions recorded in the digital ledger are transparent and can be viewed by anyone in the network. This promotes trust and immutability as all participants can verify the transactions for accuracy.
The use of a digital ledger in cryptocurrency eliminates the need for a central authority to oversee transactions, making the process more efficient and cost-effective. It also allows for faster transaction speeds and lower fees compared to traditional banking systems.
