Shared Ledger Systems

Definition ∞ Shared ledger systems are digital databases that are replicated, shared, and synchronized across multiple participants in a network. Each participant maintains an identical copy of the ledger, and updates are agreed upon through a consensus mechanism. This technology, often referred to as distributed ledger technology, provides transparency, immutability, and enhanced security for recording transactions. It reduces the need for intermediaries.
Context ∞ Shared ledger systems are frequently discussed in crypto news as foundational technology for cryptocurrencies, central bank digital currencies, and other digital assets. Financial institutions and corporations are exploring their use for streamlining interbank payments, trade finance, and supply chain management due to their potential for increased efficiency and reduced fraud. The adoption of these systems represents a significant shift in how transactions are recorded and verified globally.