Definition ∞ A Digital Ledger is a database that is shared and synchronized across multiple participants in a network. Each participant holds an identical copy of the ledger, and any new transaction is recorded and validated by the network. This distributed nature enhances security and prevents single points of failure. Blockchains are a prominent example of a digital ledger technology, underpinning many cryptocurrency systems.
Context ∞ The concept of a Digital Ledger is central to understanding the foundational technology of cryptocurrencies and distributed systems. Current discussions often revolve around the scalability, security, and interoperability of various ledger implementations. Innovations in consensus mechanisms and data structures are continually being developed to augment the capabilities and reach of digital ledger technology.
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