Ledger Reconciliation

Definition ∞ Ledger Reconciliation is the process of comparing and verifying transaction records across different ledgers or systems to ensure consistency and accuracy. In the context of blockchain, this involves confirming that on-chain transactions match internal or external accounting records. It is essential for maintaining financial integrity and preventing discrepancies.
Context ∞ Ledger reconciliation is a critical operational procedure for cryptocurrency exchanges, custodians, and financial institutions dealing with digital assets. Automation and cryptographic proofs are increasingly being applied to streamline this process, addressing the complexities introduced by high transaction volumes and the immutable nature of blockchain records.