Transaction Transparency

Definition ∞ Transaction transparency refers to the degree to which information about financial exchanges is openly visible and auditable. In blockchain systems, this often means that all transactions are recorded on a public ledger, visible to anyone, though participant identities may remain pseudonymous. This characteristic allows for public verification and accountability.
Context ∞ Transaction transparency is a fundamental attribute of public blockchains, offering a level of auditability not always present in traditional financial systems. While it aids in preventing fraud and verifying asset flows, concerns about privacy for individuals and businesses remain a key discussion point. Developments in zero-knowledge proofs and other privacy-enhancing technologies seek to balance transparency with confidentiality.