Distributed Ledger

We had a huge article explaining what is Blockchain, and we have mentioned distributed ledgers quite a few times, and we have had some requests on what are Distributed Ledgers – and what makes it different from a Blockchain technology.

What is a Distributed Ledger

It is a ledger of any kind of transactions or contracts stored in decentralized form across different locations and people. There is no need for central authorities to keep an eye against manipulation. The information is securely an accurately stored using cryptography and can be accessed using keys and cryptographic signatures.

In simple words, A distributed ledger is a database that is stored and updated by each node in a big network. It is very unique, as they are independently constructed and held by every node.

Once the information goes to a database and gets stored there, it cannot be modified. Centralized ledgers are subject to hacking and attacks, however distributed ledgers are much harder to hack, because all of the distributed copies need to be attacked continuously for an attack to be successful.

Ledgers have been in use for years, and it is a middle source or economic transactions. That is to record contracts, payments, buy and sell deals or any kind of movement of assets or property. Ledgers started out already in ancient days, when all of the information was recorded/written on papyrus. For many years now computers have taken the control of this whole situation, making the process of record keeping much faster and easier..

Difference Between a distributed ledger and Blockchain

The word Blockchain gets more popular each day and it’s audience is growing hour by hour, even banks are starting to have interest in the blockchain technology, to see what this sort of technology could possibly offer to them. One of the biggest and most important difference is that Blockchain is just one form of distributed ledger. Blockchain is created of blocks, and distributed ledgers do not need that sort of chain. Distributed ledgers also don’t require proof-of-work – which gives them better scaling options.

Removing the middleman from the equation is what makes the idea of distributed ledger technology so appealing. A distributed ledger is merely a type of database spread across a variety of sites, area, or participants.

All of the blockchains are distributed ledgers, however keep in mind that not all of the distributed ledgers are blockchains!

Benefits of Blockchain and Distributed Ledger.

A distributed ledger provides control of all information and transactions to the users and promotes transparency. This way they are capable of cutting down the processing time from hours to minutes and are saving several businesses billions of euros. Such technology also simplifies increased back office performance and automation. One example of a distributed ledger is Blockchain which is extremely useful for financial transaction. The security is much higher than any other technology invented so far.

There are fewer risks for fraud, as no one controls and cannot change what’s once written on Blockchain.


Blockchain is a unique type of distributed ledger, it is designed to record transactions or digital interactions and bring along transparency, efficiency and security, but those two technologies are not the same at all.