How does a ledger work in the context of digital currencies?

3 answers

• Jan 07, 2022 · 3 years ago
  A ledger in the context of digital currencies is a decentralized database that records all transactions made using the currency. It acts as a public record of every transaction, ensuring transparency and preventing double spending. Each transaction is added to the ledger as a new block, forming a chain of blocks known as a blockchain. This ledger is maintained by a network of computers, known as nodes, which validate and verify transactions. The ledger is secure and tamper-proof, making it an essential component of digital currencies like Bitcoin and Ethereum.
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• Jan 07, 2022 · 3 years ago
  Think of a ledger in digital currencies as a digital version of a traditional bank's transaction history. It keeps track of every transaction made using the currency, ensuring that no one can cheat the system. The ledger is distributed across multiple computers, making it difficult for anyone to manipulate or alter the records. It's like a public ledger that everyone can access and verify. This transparency and decentralization are what make digital currencies so secure and trustworthy.
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• Jan 07, 2022 · 3 years ago
  In the context of digital currencies, a ledger is a fundamental concept that ensures the integrity and security of transactions. It serves as a decentralized record of all transactions, eliminating the need for a central authority like a bank. The ledger is maintained by a network of computers, each storing a copy of the entire transaction history. Whenever a new transaction is made, it is added to the ledger and verified by the network. This verification process ensures that the transaction is legitimate and prevents double spending. The ledger is constantly updated and synchronized across all computers in the network, making it highly secure and resistant to tampering.
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