Blockchain Ledger vs Distributed Ledger
Parameter | Blockchain Ledger | Distributed Ledger |
---|---|---|
Consensus mechanism | A consensus method, such as proof of work or proof of stake, is used by blockchain ledgers to validate transactions and add new blocks to the chain. |
Distributed ledgers, on the other hand, employ a variety of consensus algorithms, including Paxos, Raft, and Byzantine Fault Tolerance. |
Scalability | Due to the consensus method and the requirement that every node validates every transaction, blockchain ledgers have come under fire for their poor scalability. |
On the other side, distributed ledgers can be more scalable since they leverage an efficient network of nodes to validate transactions. |
Applications | Bitcoin and other cryptocurrencies as well as other financial applications frequently employ blockchain ledgers. |
Several sectors, including supply chain management, healthcare, and government, use distributed ledgers. |
Permission | Blockchain ledgers come in both public and private varieties, with private blockchains only accessible to a few users. |
Distributed ledgers can either be public or private, however, they are typically utilized in business contexts and require access rights. |
Structure | Blockchain is a distributed ledger that uses blocks of data connected in a chain using encryption, making it difficult to change. | On the other hand, distributed ledgers use a network of nodes rather than a chain of blocks to jointly maintain a ledger. |
What is Ledger in Cryptocurrency?
The ledger is the book in which the user’s transactions on the network are recorded. The ledger is like a book where everything is recorded to maintain security, privacy, and transparency in the network. It is shared among all the users on the network.