What is a distributed ledger?
Answer
A distributed ledger is a database that is shared, replicated, and synchronized across multiple locations, institutions, or geographies. Unlike a centralized database (managed by one entity, e.g., a bank's database), a distributed ledger has no single point of control or failure. Each participant (node) holds a complete or partial copy of the ledger. Changes to the ledger are propagated to all nodes and must be agreed upon through a consensus mechanism. Blockchain is the most well-known type of distributed ledger — it structures records into linked blocks. Other distributed ledger technologies (DLTs) exist without a block structure (e.g., Hashgraph, Tangle/IOTA). Distributed ledgers remove the need for trusted intermediaries (banks, notaries, clearinghouses) by making trust a property of the system rather than of a central authority.