Distributed Ledgers
Candlefocus EditorAt its core, a distributed ledger is a digital database that is stored on, updated, and maintained by multiple computers or networks of computers. Unlike traditional ‘centralized’ databases, distributed ledgers are built on a system of distributed nodes. Each node contains a replicated and updated version of the ledger and participants in the network must agree on a consensus before a transaction can be added to the ledger. Theoretically, distributed ledgers offer improved security, higher efficiency, and faster transactions.
Distributed ledgers have opened the door to a range of new and unfolding applications which were not feasible before its emergence. They enable unprecedented levels of transparency, particularly when it comes to financial transactions. As a result, distributed ledgers allow for increased trust and safety when making payments, and for instantaneous and secure authentication of digital identities.
Today, distributed ledgers are used in multiple industries and can be used for a variety of purposes ranging from maintaining medical records to administering voting systems to creating digital currency tokens to owning land titles. An important advantage that distributed ledgers offer users is the assurance that data won’t be lost, tampered with, or made vulnerable to attack. With this assurance, users can feel confident that they are using safe and secure networks when transacting online.
Adoption of distributed ledgers is likely to continue, as it can be applied to any industry that needs data transparency, accuracy, and security. By enabling parties to transfer and use data securely and efficiently, distributed ledgers can save time and money and can revolutionize the way in which data is stored and accessed.