How does the ledger contribute to the functioning of digital currencies?

3 answers

• Timur JananashviliFeb 06, 2022 · 4 years ago
  The ledger, also known as the blockchain, is a decentralized and transparent system that records all transactions of digital currencies. It serves as a public ledger that ensures transparency by allowing anyone to view and verify transactions. Additionally, the ledger uses cryptographic techniques to secure transactions, making it nearly impossible to alter or tamper with the records. This ensures the integrity and security of digital currency transactions.
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• Rupanjali SahuDec 05, 2022 · 3 years ago
  The ledger is like a digital accounting book that keeps track of all digital currency transactions. It contributes to the functioning of digital currencies by providing a transparent and immutable record of every transaction. This transparency helps prevent fraud and ensures that all transactions are accounted for. The ledger also plays a crucial role in verifying the ownership and authenticity of digital currency units, allowing for secure and trustless transactions.
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• Mohammed abdJan 04, 2023 · 3 years ago
  The ledger, or blockchain, is an essential component of digital currencies like Bitcoin. It acts as a decentralized database that stores and verifies all transactions. Each transaction is added to a block, which is then linked to the previous blocks, creating a chain of transactions. This distributed ledger ensures that no single entity has control over the entire system, making it resistant to censorship and manipulation. It also enables peer-to-peer transactions without the need for intermediaries, reducing transaction costs and increasing efficiency.
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