Definition ∞ On chain auditability refers to the capability of examining and verifying all transactions and activities recorded directly on a blockchain ledger. This transparency allows for public inspection of financial flows and protocol execution, ensuring data integrity and operational correctness. The immutable and distributed nature of blockchain records inherently supports this property. It is a fundamental characteristic of public ledgers.
Context ∞ On chain auditability is a central advantage often cited for blockchain technology, particularly in financial reporting, supply chain verification, and regulatory compliance. The discussion frequently involves how to balance this transparency with privacy concerns, leading to the development of zero-knowledge proofs and other privacy-preserving technologies. Future developments seek to refine methods for selective disclosure while maintaining verifiable integrity of data on the chain.
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