What is a "ledger" in the context of blockchain?

In the context of blockchain, a ledger refers to a comprehensive digital record that captures all transactions that have occurred within the network. This decentralized and immutable ledger is a core component of blockchain technology, ensuring that every transaction is time-stamped, securely stored, and verifiable by all participants in the network. The design of the ledger allows for transparency, as all parties can access the same information, preventing fraud and ensuring trust in the data being shared.

This characteristic of the ledger is vital because it establishes a single source of truth for all transactions, which is fundamental in various applications of blockchain, such as cryptocurrencies, supply chain management, and smart contracts. By maintaining an accurate and unchangeable record of transactions, the blockchain can operate effectively without the need for a central authority overseeing the data.