A distributed ledger is a digital record-keeping system that provides all participants in a network with a synchronized copy of the data. Unlike traditional ledgers, which are centralized, distributed ledgers operate on a peer-to-peer network, enhancing transparency and security. Transactions are recorded in blocks and linked in chronological order, ensuring immutability. Each participant validates transactions through consensus mechanisms, which reduces the risk of fraud. This technology underpins blockchain systems, enabling applications in various sectors, including finance and supply chain, by providing a decentralized, trustworthy record of transactions.