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The term ledger refers to either a physical book or a digital computer file that records monetary and financial transactions. 

Understanding the term

Normally a ledger is used to refer to physical copies used to record the balance for each individual or account in the form of debit or credits.  Nowadays, physical ledgers have been replaced by digital ones in various scenarios worldwide. Computers can now provide the process of record keeping with great convenience and speed, thanks to a digital ledger.

However, one of the most innovative and recent forms of a digital ledger is a distributed digital ledger which is cryptographically secured, fast, and decentralized. Blockchain is a type of digital distributed ledger that uses independent computers or nodes to record, share and sync transactions in their respective electronic ledgers.

This means it does not have to keep data centralized like a traditional ledger. Distributed ledger technology has the potential to change the current financial sector, making it more resilient and reliable. It can increase efficiency and lower remittance costs which can improve access to finance for unbanked populations around the world. 


Ledgers form the backbone of a cryptocurrency by storing information after verification. The public ledger must be configured using the right parameters to maintain the decentralized and anonymous features in cryptocurrencies.

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