Blockchain and Privacy

Blockchain is a digital ledger system that records transactions across many computers, ensuring transparency and security without needing a central authority. Each transaction is grouped into blocks and linked chronologically. While this openness boosts trust, it poses privacy challenges; anyone can view transaction details. To address this, methods like pseudonymization—using codes instead of names—are employed. Additionally, some blockchains, like Monero or Zcash, enhance privacy by obscuring transaction data. Balancing transparency and privacy in blockchain technology is crucial for secure and trustworthy digital interactions.