Ledger Theory

Ledger Theory is a way to understand how assets, liabilities, and ownership are recorded and managed in a systematic manner. Imagine a ledger as a comprehensive list that tracks all transactions involving an entity or person. Every entry reflects either a gain or a loss, ensuring transparency and accountability. This theory forms the basis for modern accounting, cryptocurrencies, and distributed ledgers by emphasizing the importance of precise record-keeping and verification. Essentially, it helps maintain trust in financial and digital ecosystems by providing a reliable method to track ownership and value exchanges.