How Does the Immutability of a Blockchain Protect Financial Derivatives Records?
Immutability means that once a transaction or a smart contract deployment is recorded on the blockchain, it cannot be altered or deleted. For financial derivatives, this ensures that the terms of the contract, the collateral locked, and the record of execution are permanently auditable and tamper-proof.
This transparency and permanence are key to building trust in decentralized finance (DeFi) systems, preventing retroactive manipulation of trade data.