Verifiable Cash Flow

Definition ∞ Verifiable cash flow pertains to the transparent and auditable movement of economic value within a blockchain-based system, allowing for independent confirmation of financial operations. This concept applies to decentralized applications or protocols where revenue generation and expenditure can be tracked on-chain. It offers a high degree of financial transparency and accountability. The immutability of the ledger ensures transaction integrity.
Context ∞ News frequently examines projects that offer verifiable cash flow, particularly in decentralized finance (DeFi) and real-world asset tokenization. This transparency helps establish trust and allows participants to assess the financial health of a protocol. Regulatory bodies are also exploring how on-chain verifiable cash flow can aid in compliance and reporting.