Avoidance Chain

Get a clear understanding of crypto terminology specific to Aztec Protocol. This guide explains key terms and concepts essential for using the protocol effectively.

An avoidance chain refers to a series of transactions that are designed to obscure the source or destination of funds within a blockchain. This practice is often employed to enhance privacy or evade regulatory scrutiny.In an avoidance chain, a user might move their assets through multiple wallets or exchanges before reaching their final destination. This creates layers of obfuscation, making it difficult for outsiders to track the flow of funds. Each transaction in the chain makes it harder to link the original source to the ultimate recipient.While some people use avoidance chains for legitimate privacy reasons, they can also facilitate illegal activities, such as money laundering or fraud. As a result, cryptocurrency platforms and regulators are increasingly looking for ways to detect and analyze these chains to ensure compliance with laws and to maintain a transparent ecosystem.Awareness of avoidance chains is essential for users who aim to understand the implications of their transaction behaviors and for those involved in developing security measures within the space.

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