Because the blockchain is transparent it is often said that it bridges the trust gap. The blockchain can function as a record of value storage in exchange. These records of value and transactions may be called Ledgers since ancient times ledges have formed the backbone to our economies to record contracts and payments for the buying and selling of goods.
Ledgers were first kept on stone then moved to paper and are now kept on digital records. Now, these ledgers has shifted to a global network of computers which is cryptographically secured fast and decentralized to what is called a distributed ledger.
A decentralized ledger can described as a ledger of any transactions or contracts supported by a decentralized network from across different locations and people eliminating the need of a centralized authority.
This means that ledgers are available to the public to those who are in the network and have a cryptographic signature. Some ledgers are made available to the public, such as the bitcoin ledger, and others are only available to those who need to know, such as the Corda ledger which holds valuable information on people’s financial background.
In our current society, if you take a taxi and pay the driver with a credit card, you might think that money is being transferred from your wallet to his. However, what is really happening is that you giving your bank permission to transfer money from your account to the bank where the taxi driver stores his money. So we are not actually the ones in charge or our own money – our banks are. This creates a power imbalance in our society, but with a distributed ledger individuals can access their records and send money directly to another person’s record on a peer-to-peer network.
In conclusion, a distributed ledger raises transparency and lowers the risk of data centralization and corporate corruption within companies which hold valuable information. It also secures data from being hackable.