One of the core concepts in blockchain technology is “transparency.” Some people say that blockchain gives you privacy while some say that it is transparent. So which one is it?
A person’s identity is hidden via complex cryptography and represented only by their public address. So, if you were to look up a person’s transaction history, you will not see “a person name that sent 3 BTC” instead you will see “2BF1bhsFLkazzz9vpFYEmvwT2TbyCt7NBZ sent 3 BTC”.
BThe following snapshot of Ethereum transactions will show you what we mean:
So, while the person’s real identity is secure, you will still see all the transactions that were done by their address. This level of transparency has never existed before within a financial system. It adds that extra, and much needed, level of accountability which is required by some of the biggest institutions.
Speaking purely from the point of view of cryptocurrency, if you know the public address of one of these big companies, you can simply pop it in an explorer and look at all the transactions that they have engaged in. This requires them to be honest, something that they haven’t had to deal with before.
However, that’s not the best use-case. We are pretty sure that most of these companies won’t transact using cryptocurrencies, and even if they do, they won’t do ALL their transactions using cryptocurrencies. But what if the blockchain technology was part of their supply chain?