Operation without the input of a third party isn’t always necessary with DLT, but in some use cases it can be a huge bonus. Therefore, the data is 100% tamper proof as long as the ledger remains distributed. This means that once a record has been written onto this ledger it cannot be rectified by another party. A distributed ledger, if set up correctly, is immutable. These few things are extremely important. The main benefits of a distributed ledger are that it is highly secure, transparent, immutable and tamper proof, while entries in this database can occur without the need for third parties. What are the benefits of a distributed ledger? The number of use cases of these revolutionary databases is sky high. Now, a distributed ledger refers just to the database and does not provide any insight into the contents. With distributed ledger technology the scope of these databases has vastly increased. In the past, a ledger used to refer to financial records. The database is synchronized between the network to ensure accuracy. Therefore, a distributed ledger is a database that is held and updated by multiple individuals in different locations. In the beginning, these records may have been written in clay, and over time these have progressed to paper, and then into the digital realm to the birth of distributed ledger technology (DLT).ĭistributed in this context means spread out globally and controlled by multiple parties. Ledgers have existed for thousands of years. Now with the invention of a distributed ledger this has taken on a new form. The definition of a ledger has traditionally meant a collection of financial accounts. A distributed ledger is a database that is shared among a network in multiple geographical locations.

Liquid ledger