Distributed Ledger
Definition
A transaction record replicated across many independent nodes. Each node holds a full or partial copy and validates new entries against the shared rules. No single node is authoritative, so tampering requires controlling a majority of the network.
- Structure
- Transaction record replicated across independent nodes
- Authority model
- No single authoritative node
- Tampering resistance
- Requires controlling a majority of the network
- Best-known example
- Blockchain
Common questions
Is a distributed ledger the same thing as a blockchain?+
Blockchain is one implementation of a distributed ledger that chains blocks of transactions cryptographically, but distributed ledger is the broader category and other implementations arrange or validate records differently.
Why does a distributed ledger matter to an investigator tracing digital assets?+
Because every node holds a copy of the transaction history, investigators can independently verify a transaction chain from public ledger data rather than relying on a single custodian's records, though linking wallet addresses to real identities still requires other evidence.
Related terms
- Account Model
- Ethereum's approach, where each address holds a running balance incremented or decremented by transactions. Simpler to reason about but less transparent about...
- Block Confirmation
- The count of blocks added to the chain after the block containing a specific transaction. Higher confirmation counts mean greater computational cost...
- Private (Permissioned) Blockchain
- A network where participation is restricted to known, approved nodes. Used by banks and supply chains for transaction settlement. Records are not...
- Public Blockchain
- A permissionless network where anyone can read the ledger, submit transactions, or run a node. Bitcoin and Ethereum are public. The ledger...
- UTXO (Unspent Transaction Output)
- The fundamental accounting unit of the Bitcoin protocol. Each transaction consumes previous UTXOs as inputs and creates new UTXOs as outputs. The...