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Crypto Terms:  Letter L

What is Ledger?

Ledger - a record-keeping system that tracks and records financial transactions.
2 minutes

Let's find out Ledger meaning, definition in crypto, what is Ledger, and all other detailed facts.

A Ledger is used to record financial transactions. There is only one way to add changes to a ledger - append it with new transactions.

Ledgers aren’t unique to the cryptocurrency market. They have been used for many years before digitalization.

However, when it comes to the crypto sector, a ledger is used to keep track of the balances and transactions of each party. In this case, the identity of these parties remains unknown. 

One of the key types of a distributed ledger is a blockchain. It has the capability to record lists of transactions or blocks that can’t ever be changed. Additionally, ledgers are usually decentralized, and every party involved can verify the details of a transaction.

New blocks are added to the ledger when a block reaches full capacity. Select network parties, known as full nodes, keep a copy of the ledger. This allows for keeping track of the transactions and the parties on the network.

Since each transaction is being recorded on the network, there are doubts regarding whether ledgers are secure. Some users fear that the government or hacker groups have the means to reach the network and get away with sensitive data.