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Crypto Terms:  Letter O
Jul 07, 2023 |
updated: Apr 02, 2024

What is On-Ledger Currency?

On-Ledger Currency Meaning:
On-Ledger Currency - is a type of currency that's based on blockchain technology.
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Let's find out On-Ledger Currency meaning, definition in crypto, what is On-Ledger Currency, and all other detailed facts.

An on-ledger currency is a blockchain-based currency. This is the base of all cryptocurrencies, which must use a single copy of the same database shared among all partakers.

Furthermore, on-ledger currencies are usually arranged on the basis of the supply, public or private nature of the database, the consensus technique employed, the ecosystem, the extent of utilization, liquidity, the emission rate, wallet support, and other qualities.

As a result of the open-source nature of blockchain technology, on-ledger currency can be forked, and it is easy to use it to build a new on-ledger currency with adjusted features.

Bitcoin is the first and the most important illustration of an on-ledger currency, despite the fact that there are many more of these types of currencies nowadays. An on-ledger currency is noteworthy because it is not feasible for one or a few individuals with considerable influence to adjust its parameters. This essentially indicates that an on-ledger currency has to be free from centralized management. 

Moreover, on-ledger currencies have the possibility to evolve into a superior choice to off-ledger currencies or even fiat. Typically they are impossible to counterfeit. On-ledger currencies are open, decentralized, accessible, and pseudo-anonymous. They require the continuous and incentivized provision of computational power to maintain form. Also, they are kept in digital wallets.