Blockchain: The new transaction ledger
What is a Crypto Ledger?
A cryptocurrency ledger is used for keeping track of transactions. All data on user identities, crypto balances, and transactions carried out between various holders of cryptocurrency are kept on the public ledger known as the blockchain. Although keeping in line with the privacy and security that are the cornerstones of cryptocurrencies, all data is maintained in a safe and anonymous manner.
Networks such as ETH, BNB, BTC, and others have ledgers specific to their blockchains. Which forever track the transactions occurring between wallets and smart contracts which reside within the ecosystems.
Better than a traditional ledger?
Since all transactions are publicly published on the ledger, the cryptocurrency ledger is comparable to a traditional ledger in that every transaction may be questioned and validated by any of the two parties involved. No authority or other viewers can see the identities of the two parties, which is a massive contrast to bank ledgers. This keeps the blockchain's privacy intact, making cryptocurrency appealing with those who want to transact money in a secure and private manner.
Another one of the biggest benefits to using the cryptocurrency blockchain as a ledger is that it never disappears. Transactions can forever be tracked, traced, and accounted for. Making record keeping, even on an anonymous level, easier than ever.
Public vs Private Ledgers
Bitcoin is a type of public ledger, in which transaction details are recorded on a chain of blocks one after the other. All crypto transactions are recorded here and made available to the general public to view. Movement of crypto on a public ledger will incur a transaction fee, and the person receiving the crypto, will need to watch for on-chain confirmations of the transaction to receive it.
Companies such as Coinbase operate private ledgers. Meaning the transactions cannot be seen on the general public blockchain and that they do not incur on-chain transaction charges when the crypto is moved from one wallet to a different wallet. Custody wallets will use the advantages of a private ledger to fast flow crypto from one wallet to another, without the perceived hassle of on-chain confirmations. Crypto credit cards are another example of a product that uses private ledger technologies.