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Blockchain privacy describes how blockchain systems handle the confidentiality of transaction and record data. Many public blockchains can provide pseudonymity, while ledger transparency can allow transaction tracing through analysis of on-chain activity and related information. The persistence of ledger data can also create data-protection challenges in some applications, including questions about erasure and rectification rights where personal data are involved, and privacy characteristics vary depending on system design and use case.
Many blockchain systems represent participants using cryptographic addresses rather than real-world identities, which can provide pseudonymity. However, transaction histories associated with addresses are typically visible to participants, which can enable linkage and tracing of activity under some conditions.
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