A distributed ledger is a shared digital record maintained across multiple computers or participants rather than stored in one central location. Each participant can maintain a synchronized copy of the ledger, allowing transactions or records to be verified and updated across the network. This structure can improve transparency, resilience, and traceability while reducing dependence on a single authority.
For example, businesses in a supply chain can use a distributed ledger to record the movement of goods, with participating organizations sharing a consistent history of transactions. Depending on the design, cryptographic techniques and consensus mechanisms can help protect records from unauthorized changes. Related concepts include blockchain, consensus mechanisms, cryptography, smart contracts, digital assets, and decentralized systems.
