Centralized Ledger

A centralized ledger – also called a centralized general ledger – is a document or file that centrally records transactions.

What is a Centralized Ledger?

A Centralized Ledger includes all important accounts through which transactions are processed. Information can include payments in cryptocurrencies, but also data on companies such as debt levels, income and expenses, as well as details on the equity ratio or assets and other relevant company data. This makes the general ledger the central foundation of digital accounting.

Critics see a disadvantage here in that companies such as banks gain full control over all information on individual accounts. This can be associated with an increased risk of abuse and manipulation. Authorized persons can also close units in the system unannounced – deliberately or accidentally.

Therefore, cryptocurrencies rely on Distributed Ledger Technology (DLT), on which the blockchain is based. It is therefore a distributed cash book. This is intended to ensure the decentralization of cryptos.