Pros of a Centralized Ledger
- Control and security: Because a centralized ledger is administered and controlled by a single entity, data access can be tightly regulated and monitored. This makes it easier to maintain the data’s security and integrity, while also lowering the chance of unauthorized access or modification.
- Data that is consistent and dependable: Because all data is stored in a single location and is managed by a single body, centralized ledgers can give data that is consistent and reliable. This is especially crucial in industries where precise data is required, such as finance, healthcare, or government.
- Cost-effective: Centralised ledgers are more efficient and cost-effective than decentralized ledgers, especially for smaller organizations or those with limited resources. This is because the ledger can be managed and maintained by a single entity, eliminating the need for additional infrastructure or personnel.
- Easy to connect with existing systems: Because centralized ledgers are commonly used in conventional businesses, they may be easier to connect with existing systems and processes. This can help organizations embrace new technology or procedures without interrupting their current operations.
- Greater data control: Centralised ledgers provide organizations with greater data control, which can be beneficial in areas where data privacy and security are vital. This can also make it simpler to meet regulatory obligations.
Difference Between Centralized and Distributed Ledgers
The article focuses on discussing the differences between Centralized Ledger and Distributed Ledger.