Distributed Ledgers

Definition ∞ Distributed ledgers are databases that are shared and synchronized across multiple sites, countries, or institutions. Each participant in the network holds an identical copy of the ledger, ensuring transparency and resistance to single points of failure. Blockchain is a prominent type of distributed ledger technology.
Context ∞ The operational integrity and consensus mechanisms of distributed ledgers are central to understanding the security and functionality of most digital assets and decentralized applications. Discussions frequently address scalability challenges, the energy consumption of certain consensus models, and the potential for regulatory oversight. Future developments to watch include advancements in sharding, layer-2 scaling solutions, and the implementation of more energy-efficient consensus protocols.