Distributed Ledger

A distributed ledger is a database that is consensually shared and synchronized across multiple sites, institutions, or geographies, accessible by multiple people. It allows transactions to have public "witnesses," thereby making a cyberattack more difficult because it would have to attack all the copies stored across the network simultaneously. Unlike traditional ledgers that are maintained by a central source, a distributed ledger has no central data storage or administration functionality.

The technology came to prominence with the introduction of cryptocurrencies like Bitcoin, where it underpins the entire network by providing a transparent and secure means of recording transactions. However, the applications of distributed ledger technology extend beyond cryptocurrencies. For example, it can be used to create a distributed blacklist of fraudsters, where data can be shared among financial institutions without a single point of failure, enhancing fraud prevention across the entire network. Other potential uses include supply chain monitoring, secure voting systems, and real estate transaction management, demonstrating the technology's versatility and capacity to enhance transparency and security in various fields.