Real-Time Auditing

Definition ∞ Real-time auditing involves the continuous, immediate examination and verification of financial transactions, operational processes, or smart contract execution as they occur. In the context of blockchain, this leverages the transparent and immutable nature of distributed ledgers to provide instant visibility into asset flows and protocol states. This method enhances accountability and allows for prompt identification of anomalies or security vulnerabilities. It offers a significant improvement over periodic review cycles.
Context ∞ Real-time auditing is a significant advancement for transparency and security in the digital asset space, particularly for decentralized finance protocols. News often discusses new tools and techniques that enable continuous monitoring of smart contracts and on-chain activity. The focus is on providing stakeholders with immediate assurance regarding financial integrity and operational compliance, mitigating risks proactively.