Four-Eyes Principle

Understand crypto terminology relevant to fractional banking, including key concepts like liquidity, reserves, and asset management practices in digital finance.

The Four-Eyes Principle refers to a practice where two individuals must approve or verify an action before it is executed. In cryptocurrency, this is often applied to key management and transaction approval to enhance security.By requiring two separate approvals, the risk of fraud or errors is significantly reduced. It acts as a safeguard against unauthorized actions, ensuring that at least two people are involved in critical decisions, such as transferring funds or managing private keys.This principle is particularly valuable for organizations handling substantial assets, as it adds a layer of accountability. Implementing this process can deter malicious activities and promote transparency in operations.Overall, the Four-Eyes Principle serves as an effective measure for strengthening security and trust within financial transactions.

Latest Resources and Blogs