Decentralized Ledger Architecture

Definition ∞ Decentralized ledger architecture describes a system where transaction records are maintained across multiple nodes without a central authority. This structure distributes data across a peer-to-peer network, where each participant holds a copy of the ledger, and consensus mechanisms validate new entries. Its design promotes censorship resistance, transparency, and resilience against single points of failure. The absence of a central intermediary significantly alters traditional data management and transactional processes.
Context ∞ Decentralized ledger architecture is the foundational principle behind most cryptocurrencies and blockchain applications, offering an alternative to centralized databases. Discussions frequently revolve around scalability, security trade-offs, and energy consumption associated with different consensus mechanisms within this architecture. Continuous innovation aims to enhance the efficiency and transactional capacity of these distributed systems while preserving their core properties.