What is Ledger in Crypto
A ledger (not to be confused with Ledger) is a record-keeping system: it tracks value as is moves around, so the viewer can always see exactly what value resides where at a given moment. Traditional finance systems like banks use ledgers to track all transactions completed within a period.
Blockchains are a form of digital ledgers that validate and store all transactions within their network. For example, the Bitcoin blockchain records all transactions involving bitcoins using blocks secured by cryptography.
Blockchain technology is an effective ledger system because it operates an immutable and autonomous record-keeping network, which means that you can’t change any data once it is stored on the blockchain.
What is a Public Ledger In Crypto?
A public ledger is an open-access network; anyone can join at any time. The public ledger is fully decentralized, and no single entity controls the blockchain network. The Bitcoin and Ethereum blockchains are both considered public ledgers.
Public ledgers are also the most secure blockchains; they maintain a pseudo-anonymous system for their users’ identities. While all transactions are recorded publically, user identities remain private.
This means that while you can view any wallet address with its balance and transaction records, you cannot gain access to the identity of the wallet owner.
The General Purpose of a Crypto Ledger
A crypto ledger keeps an immutable record of all transactions on a cryptocurrency network. This system helps keep users’ identities anonymous, while still maintaining an accurate history of transactions within the network.