CentralLedger

“Before blockchains, there were central ledgers.”
To understand crypto, it helps to know what came before it: the central ledger, the traditional way of tracking money and records.

🧾 What is a Central Ledger?
A central ledger is a single, master record of transactions that’s:
📍 Stored in one location
👤 Controlled by a single entity, like a bank, government, or corporation
This central party is responsible for maintaining and updating the record.

🏛️ Real-World Examples
🏦 A bank’s database that records account balances and transfers
📜 A company’s bookkeeping system
💳 Your credit card provider’s transaction history
In all of these, trust is placed in one central authority to manage the data accurately.

🔁 How Is It Different from Blockchain?

⚠️ Limitations of Central Ledgers
❌ Vulnerable to corruption or fraud
⚠️ Prone to hacking if security is breached
🔐 Lack of transparency and user control
These challenges are exactly why decentralized systems like blockchain were created.

📚 References:
Binance Academy – Centralized vs Decentralized SystemsInvestopedia – Central Ledger

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