So my guess is that you are here probably due to Blockchain.
Now day's Blockchain is trending technology with enormous potential and people are too curious about it.
Blockchain is growing exponentially due to its wide applications in industries and banking systems.
If you have read or heard about Blockchain you must have encountered this word 'Distributed Ledger System'.
So before taking depth in Digital Ledger lets have a look at Ledger itself.
What is Ledger?
A ledger is the principal book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.
So that's the classic definition of ledger. In layman language you can think of ledger as an notepad containing your expenditure and gain etc.
Just replace yourself with a industry or banking system.
Now coming to our main Question.
What is Digital Ledger?
These early digital ledgers mimicked the cataloging and accounting of the paper-based world, and it could be said that digitization has been applied more to the logistics of paper documents rather than their creation.
What is Distributed Ledger?
Computing power and breakthroughs in cryptography, along with the discovery and use of some new and interesting algorithms, have allowed the creation of distributed ledgers.
In its simplest form, a distributed ledger is a database held and updated independently by each participant (or node) in a large network. The distribution is unique: records are not communicated to various nodes by a central authority, but are instead independently constructed and held by every node. That is, every single node on the network processes every transaction, coming to its own conclusions and then voting on those conclusions to make certain the majority agree with the conclusions.
Once there is this consensus, the distributed ledger has been updated, and all nodes maintain their own identical copy of the ledger. This architecture allows for a new dexterity as a system of record that goes beyond being a simple database.
Distributed Ledgers are a dynamic form of media and have properties and capabilities that go far beyond static paper-based ledgers.
So that's all for this post see you in the next one. Stay Tuned!
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