The main difference between a blockchain ledger and a traditional ledger is that a blockchain is a distributed database that can be decentralized with ease. Compared to a typical ledger, this approach offers a significantly lower chance of mistake. A traditional ledger is one that is established by hand or via human labour, whereas the Blockchain automates every step. All that’s left to do now is set it up correctly and according to the directions.
There are a lot of different blockchains with a lot of different designs. But there are two things that they have in common that are the key difference between blockchain ledgers and pre-blockchain ledgers.
Most importantly, all system participants can verify that every change in the ledger’s state complies with all the system’s rules. In a conventional ledger, say the one my bank uses to track my balance, the bank can tell me that my balance is whatever they think it is. They can tell me it’s a million dollars or a thousand dollars.
In a blockchain ledger, if I know my balance was a million dollars, the only way the bank can tell me that my current balance is less than a million dollars is to demonstrate a valid state change from the previous balance. In other words, rather than stating balances, they prove that funds were transferred.