Can Ethereum Be Traced
Ethereum is a public, open-source, blockchain-based distributed computing platform featuring smart contract functionality. Ether is a token which acts as a currency on the Ethereum platform and it is how most operations are completed on Ethereum.
In this section, we will go through what an ethereum transaction is and how they work.
A transaction in the context of blockchain networks simply means a message with some data sent to a node. Transactions can be thought of as analogous to cash currency transactions, where the currency could represent something else like gold or loyalty points.
On Ethereum transactions are used primarily to include computational steps in order to create contracts or send ether to another person or organization.
Ethereum is a decentralized platform that operates as a public blockchain network. All transactions between its miners and other nodes are made through the use of Ethereum Virtual Machine which is powered by an internal cryptocurrency called Ether.
Ethereum transactions are not reversible
A major focus for Ethereum is to create a platform that can scale to process transactions at the same rate as Visa, which handles up to about 2,000 transactions per second.
Many cryptocurrencies have tried to solve this problem by centralizing their blockchain. But Ethereum is not only decentralized but also has a different type of gas system that makes it cheaper and faster than Bitcoin or other currencies.
How to Trace Ethereum Transactions
The Ethereum blockchain is a public ledger where transactions can be viewed. So it is possible to see the sender and recipient of the transactions as well as the value transferred.
The problem with the traceability of Ethereum transactions is that they are not 100% untraceable right now. The ledger leaves a trail of all transactions made on the blockchain and they can be traced back to an individual’s public key address number.
In order to make transactions as private as possible, Ethereum provides a special type of wallet called a “Light Wallet.” This type of wallet does not store the history of any transaction. It only stores the information necessary for the user to authorize a transaction. For this reason, it is impossible to trace where a transaction originated from or where it went.
You can use the transaction ID to trace Ethereum transactions. However, as a blockchain user, you should be aware of the transaction cost.
Ethereum transactions are recorded and publically available on the ledger and you can always view them through an Ethereum block explorer like Etherscan and Bitfinex.
Ethereum is a cryptocurrency that is traceable via blockchain. Transactions are public to anyone who has access to the network. To trace an ether transfer, one has to enter the transaction ID in the header of the Ethereum block explorer. It will show all transactions, including where it was sent and received, and all associated data like timestamp, value of transaction in ETH or USD, gas used etc.
Blockchains are immutable ledger systems that can store encrypted data. They are decentralized which means that no central party owns or controls them. Transactions are recorded on blocks which are then linked together using cryptography into a chain called blockchain.