What is a Distributed Ledger?. A distributed ledger is a database replicated across many computers. Each participant keeps a copy and agrees on updates through a consensus process.
How it works
When a valid transaction occurs, nodes record it and synchronize state. Cryptographic tools detect tampering or divergence.
Why it matters
Spread‑out control reduces single points of failure and enables independent verification.
Common pitfalls
- Assuming distribution alone guarantees decentralization
- Overlooking who can propose changes
- Ignoring data availability and archival needs
Quick example
Several banks settle IOUs on a shared ledger instead of reconciling private spreadsheets.
See also
- Blockchain
- Consensus Mechanism
- On‑Chain vs. Off‑Chain
TL;DR: What is a Distributed Ledger? defined in plain English with practical next steps.
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