Some ledgers track specific inventory, specific items. This is particularly true for high value assets, like the leasing business. In these instances, ledgers are used to track these specific assets. Much of the world of blockchain is focused on these kinds of applications, specific asset tracking.

But the ledgers used to track these assets typically will also have balances tracked in some way. This is because measurement of those assets, the usage, billing, depreciation, and other aspects of them is done over time.

This balance creation process is at the heart of most traditional ledgers; it involves a posting process, to update balances with new transactions and keep a position as of a point in time. This has not historically been done in most blockchain ledger systems.

This is Episode 187 of Conversations with Kip, the best financial system vlog there is. Literally learn more–about ledgers and financial systems–at LedgerLearning.com. Watch all episodes in order at the Conversation with Kip Playlist