Immutable Ledger refers to a record that cannot be altered or changed. In the digital age, data security and trust are essential, particularly when tracking financial transactions. While traditional systems rely on centralized entities such as banks, credit card processors, or governments, blockchain technology introduced the concept of an Immutable Ledger based on math and cryptographic principles.
To ensure immutability, blockchain utilizes hashes, which are like digital signatures. If any part of the ledger is tampered with, the corresponding hash changes, resulting in the rejection of that altered portion by the blockchain. Moreover, since copies of the blockchain exist on multiple computers worldwide, making simultaneous changes to all copies is practically impossible for a hacker.
This distributed nature of blockchain, combined with cryptographic hashes, provides a high level of security and trust. The Immutable Ledger enables individuals to trust the integrity of digital data without relying on centralized authorities.