What is a distributed ledger？

A distributed ledger is a type of database that is spread across a network of computers, rather than being controlled by a single central authority. Each computer on the network, also known as a node, maintains a copy of the ledger and validates any transactions that are added to it. This creates an immutable, transparent record of every transaction made on the network.

Distributed ledgers are often used in blockchain technology, which is a type of distributed ledger that uses cryptography to secure the data on the ledger and ensure that it cannot be tampered with or altered. However, not all distributed ledgers use blockchain technology. Some use other consensus mechanisms, such as directed acyclic graphs (DAGs), to validate transactions and maintain the integrity of the ledger.

Distributed ledgers are often used in financial applications, such as payment systems and settlement networks, but they have also been applied to a wide range of other use cases, including supply chain management, identity verification, and voting systems. They provide a decentralized and transparent way of maintaining records and conducting transactions, making them more secure, efficient, and cost-effective than traditional centralized databases.