Audit Trails

Definition ∞ Audit trails are chronological records of events and operations within a system. They document who performed what action, when, and on which data. In digital asset systems, these logs are crucial for transparency, security, and accountability. They provide verifiable evidence of transaction history and system changes.
Context ∞ The significance of audit trails in crypto news often relates to regulatory compliance and forensic investigations following security incidents. Regulators increasingly demand robust audit capabilities for digital asset platforms to combat illicit financial activities. The immutability of blockchain records naturally provides a strong basis for audit trails, a key selling point for institutional adoption.