Definition
A distributed ledger is a shared record maintained across a network rather than solely in one authoritative database. Participants use agreed procedures to synchronize or validate updates. Blockchain is one way to organize such a ledger, but distributed ledgers need not group data into a linear chain of blocks.
How It Works
The system defines who can submit entries, who can validate changes and which record is accepted when proposals conflict. Participation may be open or restricted to approved organizations. Different participants can hold different permitted views or levels of history, so distribution does not always mean that every member stores every piece of data.
Uses and Limitations
Distributed ledgers can support asset transfers and shared recordkeeping between parties. Their value depends on the governance, validation and trust assumptions of the design. Several synchronized database copies alone do not make a system decentralized. Nor does a common record guarantee that submitted claims are truthful: an inaccurate external input can still be consistently recorded. Privacy, access controls, performance and procedures for correcting mistakes require separate design choices.