A distributed ledger is a digital record of transactions or data that is maintained across multiple locations or nodes on a network. In the context of cryptocurrency, a distributed ledger is used to track the transfer of digital assets between users.
Each transaction is securely recorded on the ledger in a chronological order, creating a transparent and permanent record of all transactions. The distributed nature of the ledger means that no single entity controls or owns the data, reducing the risk of fraud or manipulation.
Blockchain is one of the most common types of distributed ledgers used in cryptocurrency. It is a decentralized and distributed ledger technology that stores data in blocks that are linked together in a chain. Each block contains a list of transactions and a unique identifier called a hash.
Overall, distributed ledgers play a crucial role in the world of cryptocurrency by providing a secure and transparent way to authenticate and track transactions without the need for a central authority.
