Summary
Legislative efforts are using blockchain technology for public transparency and auditability. Blockchains track transactions in a real-time, transparent, and immutable way. This allows customers and regulators to verify the existence of assets on a public blockchain. Off-chain transactions, on the other hand, are not recorded on the blockchain, leaving customers to rely on unregistered trading platforms for recordkeeping.
Key Points
1. Legislative efforts are leveraging blockchain technology’s public transparency and auditability features to track debits and credits in a real-time, transparent, and immutable manner.
2. Assets on public blockchains, such as tokenized securities or digital commodities, can be easily verified by customers and regulators, unlike off-chain transactions which rely on internal recordkeeping of trading platforms.
3. Off-chain transactions do not commit digital asset transactions to the appropriate blockchain, leading to potential issues with tracking ownership and accountability.