What is the technical principle of distributed ledger?

The technical principle of a distributed ledger, also known as blockchain technology, is based on a decentralized, distributed database that maintains a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a cryptographic hash of the previous block, a timestamp, and transaction data. This creates an immutable ledger of transactions that can be verified and recorded across multiple nodes in a network.

Key principles include:

1. Decentralization: There is no central authority controlling the ledger. Instead, it is maintained by a network of nodes, each having a copy of the entire ledger.
2. Immutability: Once a block is added to the chain, it cannot be altered without consensus from the network.
3. Consensus Mechanism: Nodes in the network must agree on the validity of transactions and the order in which they are added to the ledger. Common mechanisms include Proof of Work (PoW) and Proof of Stake (PoS).

Example: Bitcoin uses a distributed ledger to record all transactions made with the cryptocurrency. Each transaction is verified by nodes in the network, and once verified, it is added to a block. This block is then added to the blockchain, creating a permanent and unchangeable record of the transaction.

For businesses looking to leverage distributed ledger technology, Tencent Cloud offers services like Tencent Blockchain, which provides a secure and efficient blockchain platform to support various business scenarios, from supply chain management to digital asset transactions.