Today, we are comparing two often misunderstood topics: blockchain ledger vs usual ledger. Both these concepts are mistaken by people to be the same things but in reality, that isn’t fact.
To begin with, the ledger system has its origination dating back to the 1800s, which is definitely quite a long time! Obviously, like every other thing, as time passed and technology emerged, even ledgers evolved and digitized. They morphed to meet the requirements of people and institutions in the modern digital era.
In this article, I will walk you through a clear comparison of blockchain ledger vs usual ledger.
So, let’s get started by discussing a bit about each of them individually and together to get a good blockchain ledger vs usual ledger comparison report.
What is a Blockchain Ledger?
A blockchain ledger, as you might have known by now, is based on a distributed and decentralized ledger system offering transparency and integrity by expelling centralized authorities.
The ledger system provides the blockchain networks with the ability to create chain-like structures when storing data. any data stored on this ledger acquires that structure, thus signifying the name “blockchain”.
Primarily, a blockchain ledger is a chain of blocks where each block stores information or records. These blocks can be thought of as databases however, databases are still different in the sense that they have central control and supervision exercised over them.
Every previous block in the blockchain is linked to the next block. Thereby making it a linked chain of information scattered in blocks making it difficult to tamper or modify.
However, in this ledger system, security enhancements are done in a way that all blocks are cryptographically encrypted by hashing them. This way, only users with the right key can “unleash” the data confined inside the block.
Blockchain ledgers, by default, are immutable meaning they are inflexible and cannot be changed by any means or deleted by anyone. Once recorded, the data lives in the block forever in its original form!
Read More: Cryptocurrency Blockchains
Now, what’s a Usual or Ordinary Ledger?
For a moment, just forget about blockchain technology. We’re talking about those plain old ordinary ledgers, most of us don’t even know to make.
So, an ordinary or usual ledger refers to a document that is summarization as well as classified of debits and credits. In layman’s terms, it is simply a document we create to identify our worth of holdings, revenues, liabilities, equity, and expenditure.
All that math is enlisted in that document or the financial statement, I must say, is known as the chart of accounts, where every account or entry is called a ledger.
A usual ledger is also capable to record huge financial statements of companies with credits and debits. This allows a firm to keep track of its expenses and revenues, providing a complete insight into its financial profile.
Too much finance, right? Sorry!
Well, these statements are usually in the form of tables and can be stored physically or digitally.
With the meanings of both these ledgers explained, let us now move on to understanding the ultimate comparison of blockchain ledger vs usual ledger.
Blockchain Ledger vs Usual Ledger: A Clear Comparison
Let us get started by taking a look at the major differences between blockchain ledger vs usual ledger.
Transparency
A publicly open blockchain ledger system offers users full transparency to all the nodes in the network. Meaning, any node or machine that belongs to the network is able to view the ledger whenever they want.
This way, users are able to trust each other and it also eliminates any space for tampering of information. However, it is important to note that this feature isn’t universal to every blockchain. Private networks most often are only partially transparent.
Meanwhile, in the case of a regular ledger, they are accessible only to authorized parties meaning they offer no transparency. No employee of the firm who is not authorized may ask to view the financial statements or ledgers of the company.
Immutability
This feature too is solely withheld by blockchain ledgers. Immutability refers to the impossibility of change and alterations. Blockchain ledgers offer this feature where once the data is stored in a block, no one can alter or even delete it!
In contrast, ordinary ledgers can easily be altered or tampered with and can even be deleted whenever we want. They are not immutable and hence are highly vulnerable to data breaches.
Data Handling
In a blockchain ledger system, users are only allowed to read and write data. Moreover, once this data is moved to a block, it becomes immutable. This only allows them to view data after the fact, and cannot be altered by any means.
However, in a conventional ledger system, a user has all the freedom to read, write, alter or delete data in any way and whenever they want! This feature is although a pile of convenience and freedom is indeed vulnerable to risks that could even break your bank! PERIOD.
Encryption
This point in the blockchain ledger vs usual ledger comparison report is quite crucial.
Encryption in a blockchain ledger is accomplished with help of cryptographic hashing of data in a block. The data is encrypted before adding it to the ledger under the aegis of a one-way indeterministic cryptographic hash.
This strategy has kept many prowlers and cybercriminals at bay letting users enjoy a decentralized and secure transaction facility.
On the other hand, a typical ledger fails to provide this level of security making it easier for hackers to get into the system and misuse it.
Conclusion
Today, we are comparing two often misunderstood topics: blockchain ledger vs usual ledger. Both these concepts are mistaken by people to be the same things but in reality, that isn’t fact.
