Distributed Ledger
The basis for decentralization, a distributed ledger is a database that is shared across multiple sites or geographies accessible by multiple people. It allows transactions to open to the participants publicly. The participant at each node of the network can access the records shared across that network and can own an identical copy of it. Any changes or additions made to the ledger are reflected and copied to all participants.
A distributed ledger (also called a shared ledger or distributed ledger technology or DLT) is the consensus of replicated, shared, and synchronized digital data that is geographically spread (distributed) across many sites, countries, or institutions. In contrast to a centralized database, a distributed ledger does not require a central administrator, and consequently does not have a single (central) point-of-failure.
In general, a distributed ledger requires a peer-to-peer (P2P) computer network and consensus algorithms so that the ledger is reliably replicated across distributed computer nodes (servers, clients, etc.). The most common form of distributed ledger technology is the blockchain (commonly associated with the Bitcoin cryptocurrency), which can either be on a public or private network. Infrastructure for data management is a common barrier to implementing DLT.
In some cases, where the distributed digital information functions as an accounting journal rather than an accounting ledger, another term is used: RJT for replicated journal technology.
