Back to Glossary
IntermediateTechnology

Distributed Ledger

Definition

A database that is consensually shared, replicated, and synchronized across multiple sites, institutions, or geographies. Unlike a centralized database controlled by one entity, a distributed ledger has no central administrator — each participant maintains an identical copy. A blockchain is one specific type of distributed ledger that organizes data into chained blocks.

Example

Bitcoin's distributed ledger is maintained by thousands of nodes worldwide, each holding an identical copy of every transaction since 2009, making censorship or tampering practically impossible.

Related Terms