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Bitcoin also has a ledger, but it's a decentralized ledger. Unlike at a bank or credit card company, transactions on the Bitcoin ledger are verified by a decentralized network of “nodes." Nodes are people who run the Bitcoin software, and anyone can be a node, without asking for permission.

Bitcoin’s ledger can only append new transactions. In other words, data can only be added, it cannot be edited or subtracted. This is important because it makes it next to impossible to change the history of the Bitcoin ledger.

The appended transactions are put into a block. The block is cryptographically connected to the previous block, making a chain of blocks (“blockchain") that creates an unbroken record going back to the very first transaction.

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