Black-Box Auditing refers to a method of evaluation where the internal workings of a system are not disclosed or analyzed. In the context of cryptocurrency, this means reviewing a blockchain or smart contract without access to its underlying code or specific algorithms.

Auditors assess the inputs and outputs of the system, focusing on its performance and overall behavior rather than how those results are achieved. This can include examining transaction logs, compliance with regulations, and ensuring that security measures are in place.

This approach is often used when the code is too complex or proprietary, making it difficult for auditors to understand the intricacies involved. By taking this route, stakeholders can still gain insights into the efficiency and security of a platform, even without full visibility into the source code.

Black-Box Auditing helps provide a level of assurance to users and investors, ensuring that the system operates as intended while also highlighting any potential vulnerabilities. It balances the need for transparency with the necessity of protecting intellectual property.