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How Does the Transparency of a Public Blockchain Aid in Risk Management?

Public blockchain transparency allows real-time auditing of funds and code, reducing hidden risks and informational asymmetry.
Greeks.Live17.11.25

How Does the Transparency of a Public Blockchain Aid in Risk Management?

A public blockchain records all transactions and contract code immutably and makes them visible to everyone. This transparency allows for real-time auditing of a protocol's financial status, treasury holdings, and smart contract execution.

Traders and investors can verify solvency and monitor for suspicious activity, significantly reducing informational asymmetry and hidden risks.

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