What is Distributed Ledger ?

Money is very ancient and so is the Ledger, which the system of keeping record of accounts. Starting with the means of recording accounts have been several. Clay, wooden plank, stone, paper and finally the digital version have been the ways of record keeping. Thus after the adaptation of the computers manual data entry was replaced by digitized version.

Although the backbone of our society had always been paper-based, be it seals, certificates, money, written signatures or the bills. With the discovery of certain mathematical-algorithms, advancement in computing power and break throughs in cryptography creation of Distributed Ledgers became possible.

In this huge network, a distributed ledger is a database which is held and updated individually by every node. The conclusion of each transaction is verified through voting by the nodes on that network. It is made sure that there is agreement by the majority over the final decision.

All the nodes are supposed to maintain their identical copy of the ledger, when once all the nodes have given their consensus. This system maintains a high level of transparency. This digital revolution is enabling us to formulate and maintain new types of relations.

To conclude we can say that Distributed Ledgers are majorly about managing a system of records. Hence with the help of Distributed Ledger one can easily save on the expenses paid to banks, governments, notaries, lawyers etc.