Ledger-Based Recordkeeping

Definition ∞ Ledger-based recordkeeping involves maintaining records of transactions and ownership on a distributed or centralized digital ledger. This system provides a transparent, immutable, and auditable history of all entries. It contrasts with traditional recordkeeping, which often relies on disparate databases and manual reconciliation. The digital ledger serves as the authoritative source of truth.
Context ∞ Blockchain technology fundamentally relies on ledger-based recordkeeping, where every transaction is appended to a distributed ledger visible to network participants. This approach significantly enhances data integrity and reduces fraud in digital asset transfers and ownership. News often highlights how this method improves operational efficiency and compliance for financial institutions exploring tokenized assets and central bank digital currencies.