In this video, we'll look at the transparency of traditional centralized registries and compare them to distributed ledgers on the blockchain. Recording transactions and ensuring consensus on the current owner of an asset, is one of the key features of blockchain. It's an append-only protocol, allowing no changes to existing records. This setup defines who can enter records on the ledger and under what circumstances. It then stores these transactions. Transactions can be a trade, or text-based information like piece of programming code. Now, let's compare this decentralized ledgers where most of these records are presently kept. All nonphysical, non-registered asset transfers require a tool to change the record of ownership. Only highly trusted parties can access and modify these records. Cash is kept in bank accounts, and a bank account is a central registry. Securities like stocks are also kept in central securities depositories. These include; the Depository Trust and Clearing Corporation or DTCC, and the Canadian Depository for Securities, CDS. Record keeping of stock ownership, also has a few snags in the system. US stocks were once to be owned by the DTCC. Shareholders merely held a claim on the original certificates. In Canada, the CDS archives the ownership and any transfers. These transfers are reported only at the broker level. Making things worse when Barrick Gold needs to contact its owners for the annual shareholder meeting, it uses yet another third party like Broadridge. Broadridge will collect the information on the current holders for the bank, and being a monopolist in the market, Broadridge's service doesn't come cheap and their information is often delayed significantly. Records of most bilateral contracts are commonly kept by the parties themselves. The transactions triggered by the contract terms, thus involve a complicated account reconciliation process. Blockchain's distributed ledger cuts out many of these intermediaries. It stores all information at all locations. Let's say, a company is selling an asset, like digital tokens on the Ethereum blockchain. Etherscan, the Ethereum explorer allows anyone to see transaction records involving these digital tokens. They can also see the top five holders and the most recent transactions of the top owner based on the specific address, all in real time. To sum up, centralized ledgers require third parties because they lack transparency. Distributed ledgers are transparent by design, and therefore promote consensus amongst all parties.