“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 Systems

  • Investopedia – Central Ledger



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