What Is Ledger?

In the world of finance and blockchain, ledger is a term that refers to a transaction or asset recording system. In traditional finance, a ledger is a book or database that records every financial transaction such as income, expenses, assets and liabilities chronologically.

In the context of blockchain, a ledger acts as a distributed database that records all transactions on the network, spread across many nodes . Blockchain ledgers are immutable, increasing transparency and security. 

There are two types of ledgers: public, which can be accessed by anyone and is transparent and can be seen by the public, and private, which has limited access for certain purposes.

Additionally, the term "ledger" can also refer to crypto hardware wallets, such as the Ledger Nano, which are used to store private keys and securely manage crypto assets. 

Ledgers play a key role in modern financial systems, from traditional physical records to advanced digital systems in the blockchain and crypto era.

Read More Vocabulary