Distributed Ledger vs Centralized Ledger

Why a Distributed Ledger Is More Secure Than a Centralized Ledger

A distributed ledger has two key benefits compared to a traditional centralized ledger.


If a centralized ledger is hacked, its contents could be lost forever. Of course, banks and other large organizations will or at least should have plenty of backups, but you’re still blindly placing your faith in the company’s own internal housekeeping processes.


With a centralized ledger, you have no way to know if an unscrupulous user manually changed the data on it. Depending on the level of access the user has, it might not even set off any alarm bells.

In contrast, it’s extremely hard for a single person to change all the data on the blockchain. They would need at least 51 percent of the entire network’s computing power. Given Bitcoin has more than 10,000 nodes, it’s almost impossible to achieve.