A distributed ledger is a record of transactions that isn't kept in one place. Many computers, called nodesNodeA computer that runs a crypto network's software, keeps a copy of the blockchain and checks that new transactions and blocks follow the rules., each hold their own copy and follow shared rules to agree on which transactions are valid. The technology is often called DLT, short for distributed ledger technology.
How does it work?
Think of a company's traditional accounts. They are kept by the company itself, and everyone else has to trust that they are correct. With a distributed ledger, every participant holds the same set of books. When a new transaction is added, everyone updates their copy, and if copies disagree, the shared rules decide which one counts.
The EU's MiCAMiCAThe EU regulation on markets in crypto-assets, in force in Iceland since 1 January 2026, which sets the same rules for crypto services across the EEA. regulation defines a distributed ledger as a repository of transaction records that is shared across a set of nodes and kept in sync using a consensus mechanism.
Distributed ledgers and blockchains
A BlockchainBlockchainA public ledger where transactions are grouped into blocks, each linked to the one before, so past records can't be altered without it showing. is the most common kind of distributed ledger, but not the only one. In a blockchain, transactions are grouped into blocksBlockA batch of transactions added to a blockchain in one go, together with a reference to the block before it. that link to each other. Other designs order transactions differently. HederaHedera (HBAR)A network for payments, tokens and smart contracts built on hashgraph rather than a blockchain. Its currency is HBAR, and a council of companies governs it., for example, uses a structure called a hashgraph instead of a chain of blocks.
Distributed ledgers can also be closed. A group of companies, such as banks, then decides who may take part. Bitcoin and Ethereum, on the other hand, are open to anyone.
Why does it matter?
When no single party holds the master copy, no single party can alter or delete it. That is what makes it possible to own crypto without a bank keeping a record of what you own.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 18 October 2026.