A distributed ledger is a decentralized database that records transactions across multiple nodes in a network, ensuring transparency, security, and immutability. Unlike traditional centralized databases, a distributed ledger has no single point of failure, making it resistant to tampering and fraud.

One of the most common implementations of distributed ledgers is blockchain technology, which underpins cryptocurrencies like Bitcoin and Ethereum. Other use cases include supply chain tracking, identity verification, and financial settlements, where trust and verifiability are crucial. Distributed ledgers eliminate the need for intermediaries, reducing costs and increasing efficiency in various industries.