How Does This Integrity Mechanism Compare to Traditional Ledger Auditing?
Traditional ledger auditing is retrospective and relies on human or system checks to find discrepancies, which can be slow and fallible. The blockchain's Merkle Root provides instantaneous, cryptographic integrity for every block of transactions.
Any node can instantly verify the integrity of the entire block with a single hash check, making the auditing process continuous and automated.
Glossar
Integrity
Data ⎊ Data integrity is the assurance that market information, particularly asset pricing feeds from oracles and trade execution records, remains accurate, consistent, and unaltered throughout its lifecycle.
Auditing Process
Analysis ⎊ The auditing process involves a systematic, independent examination of a financial system's code, economic model, and operational procedures to identify vulnerabilities and structural flaws.
Ledger
Provenance ⎊ A ledger, within cryptocurrency and derivatives, functions as a tamper-evident record of all transactions, crucial for establishing ownership and facilitating settlement, differing from traditional centralized systems through its distributed nature.
Ledger Auditing
Transparency ⎊ Ledger Auditing provides the necessary mechanism for external parties to cryptographically verify the on-chain movement of assets, which is a prerequisite for transparent ESG reporting.
Blockchain Ledger
Ledger ⎊ The blockchain ledger, within the context of cryptocurrency, options trading, and financial derivatives, represents a cryptographically secured, distributed database recording transactions across a network.