What is a Distributed Ledger

Distributed Ledger is a decentralized database used to record and share transactions among multiple network participants. Each participant’s verification of transaction authenticity and consistency is ensured through consensus mechanisms and cryptographic tools. Blockchain is also a type of distributed ledger.

What is blockchain? What are its unique structures? Please refer to the “What is Blockchain” entry.

Main features of a distributed ledger: Decentralization

Unlike a centralized ledger, a distributed ledger is managed collectively by multiple participants (nodes) rather than a central authority. Each participant independently records transactions occurring on the network and continuously maintains synchronization according to certain rules (consensus).

What is a node? What is its role? Please refer to the “What is a Node/Validator” entry.

Security

Since transaction records are not stored in a single system, decentralized ledgers are less vulnerable to network attacks compared to centralized ledgers. Each participant in the network holds a complete and synchronized copy of the transaction records, so an attack on a single or some participants does not affect the entire network.

Transparency

Transactions in a distributed ledger are transparent. All participants can access, participate in recording, and verify the records. Unless the majority of participants controlling the ledger are compromised, the records are not easily tampered with.

A 51% attack is a malicious attack that controls the majority of the voting power in the ledger. For more information, please refer to the “What is a 51% Attack” entry.

Classification of Distributed Ledgers

Based on who can read and access the ledger, distributed ledgers are divided into Public and Private. Public ledgers can be read by anyone, while Private ledgers are accessible only to authorized users.

Based on who can verify transactions, distributed ledgers are divided into Permissioned and Permissionless. Permissioned means only trusted, authorized users can verify transactions and modify ledger records, while Permissionless means anyone can verify transactions and build the ledger. $FLUX **$GALFAN **$FLOW