What Is a Ledger? | Definition, Types, and Key Uses A ledger is a financial record-keeping system used to store, organize, and summarize all transactions within a business or digital ecosystem. In traditional accounting, a ledger is a central document—either physical or digital—that records financial activities like revenues, expenses, assets, and liabilities. In modern technology, particularly blockchain, a ledger refers to a decentralized and immutable database shared across multiple computers for secure and transparent data tracking. 🔍 Types of Ledgers: General Ledger (GL): The main accounting record that summarizes all financial transactions of a business. Sub-ledger: A detailed breakdown of specific accounts such as inventory, accounts payable, or accounts receivable. Digital Ledger (Blockchain Ledger): A secure, distributed ledger system used in cryptocurrency and Web3 platforms to validate transactions and prevent tampering. ⭐ Why Ledgers Are Important: Ensure accurate and auditable financial reporting Help meet regulatory and tax compliance standards Enable real-time tracking of assets and transactions Power blockchain applications, smart contracts, and DeFi systems Whether used by small businesses, large enterprises, or blockchain networks, ledgers are the backbone of financial trust and data integrity.