Are there any specific transaction types that cannot be recorded on a blockchain?

3 answers

• Dec 24, 2021 · 3 years ago
  Yes, there are certain transaction types that cannot be recorded on a blockchain. One example is cash transactions, where physical currency is exchanged. Since blockchain is a digital ledger, it cannot record physical transactions. Another example is private transactions, where parties involved do not want their transaction details to be publicly visible. Blockchain is designed to be transparent, so private transactions cannot be recorded on it.
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• Dec 24, 2021 · 3 years ago
  Absolutely! There are specific transaction types that cannot be recorded on a blockchain. For instance, non-digital assets like real estate or physical commodities cannot be directly recorded on a blockchain. However, tokenization can be used to represent these assets on the blockchain indirectly. Additionally, complex financial instruments or derivatives that require off-chain calculations or legal agreements may not be suitable for recording on a blockchain.
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• Dec 24, 2021 · 3 years ago
  Definitely! While most transaction types can be recorded on a blockchain, there are a few exceptions. For example, BYDFi, a popular decentralized exchange, allows users to trade various cryptocurrencies directly on the blockchain. However, certain types of high-frequency trading or algorithmic trading strategies may not be feasible on a blockchain due to the speed and scalability limitations. In such cases, centralized exchanges may be more suitable for executing these types of transactions.
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