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So where is this “Bitcoin ledger”?

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Well, there is another very important difference between everyday money and Bitcoin. The transactions are not mere entries in a computer server. Rather, they are entries in a duplicated, distributed ledger spread across a network of thousands of servers.

Bitcoin is sometimes known as a “trustless” system; not because it can’t be trusted, but because trust in a single person or company isn’t required. In a sense, trust is already baked into the system. It’s “trustless” because you don’t have to trust any particular individual, or any particular organization. This is because of the way the mathematics behind Bitcoin functions (keeping participants honest, in effect): It ensures that many servers are involved, and that the system itself can be trusted.

So we have Bitcoin transactions stored in the Bitcoin ledger. Where and how is that ledger stored? To understand that, we have to take another step back, and understand a little about blockchains.

Bitcoin For Dummies

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