Distributed ledgers are ledgers in which data is stored across a network of decentralized nodes.
Distributed ledger technology can also be used in other industries. For instance, government agencies experiment with it to record data like ownership titles. The healthcare sector could use it to record medical records. Businesses already use distributed ledger technology in supply chains.
Distributed ledgers can also be useful to individuals in order to secure their private data and intellectual property rights. In essence, this technology can:
Create a more transparent record of data;
Reduce operational costs and increase operational efficiency;
Reduce the latency between updates of the ledger;
Reduce the risks of fraudulent activity, tampering and manipulation;
Increase levels of security.
A blockchain is a type of distributed ledger technology, but not all distributed ledgers are blockchains. Blockchains chain their data together in blocks. However, distributed ledgers do not necessarily rely on the chain approach. Data can also be loosely structured or completely unstructured, depending on the design of the distributed ledger.
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