Overview
Unlike traditional banking systems where records are private, public blockchains are open ledgers. Anyone can use a block explorer to view the balance of any address and the history of every transaction ever made.
Benefits
- Accountability: Public entities and charities can be audited in real-time.
- Trust: Users don't have to trust a central authority; they can verify the data themselves.
- Security: Makes it difficult for bad actors to hide illicit activities.
Privacy Trade-off
While transparent, users are pseudonymous (identified by addresses, not names). Privacy-focused blockchains use advanced cryptography to hide transaction details while maintaining integrity.