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Decentralized Ledger

Decentralized Ledger
 


The main technology which is behind blockchain is a decentralized ledger which is the technology behind the success of Bitcoin.
By decentralized system, we mean that there is no central authority. The system is transparent and not governed by any one party.
For example, when money is transferred from one person to another the bank is the central authority which initiates the transfer for which bank charges fees whereas if we make use of bitcoin or any other cryptocurrency no fees are charged from the customer for transfer from one person to another.
Moreover, by decentralized ledger, we also mean that the whole system is transparent and any updates which are made in the system are updated to everyone who is part of that system. This transparency reduces hacking of the system because anyone who tries to make changes to any node in the system has to make changes to all the nodes simultaneously which is next to impossible, unlike a centralized system that is prone to cyber-attacks.

The Distributed ledger is marking its importance in various industries like:
  • Finance
  • Music and entertainment
  • Diamond and precious asset
  • Artwork
  • Supply chains of various commodities



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