Blockchain

A blockchain is a shared ledger in which transactions are recorded in blocks and chained together. Because many participants keep the same data, a transaction once recorded is hard to change afterwards. That property means that many movements are in principle traceable.

What it may indicate

The fact that transactions are recorded does not mean everything is immediately clear. Addresses are visible, but who is behind them is not automatic. What a series of transactions really tells only emerges when they are examined in context.

To understand a flow of funds, the transactions as recorded on the blockchain are examined. Because the data are public and chained, a route can in principle be followed. What that route means only emerges from investigation.

What is a blockchain?

A shared ledger in which transactions are recorded in blocks and chained together. A recorded transaction is hard to change afterwards.

Does the blockchain show who is behind an address?

No. Addresses are visible, but who is behind them is not automatic. That only emerges from examining the transactions in context.

What makes a blockchain usable as evidence

The property that matters in an investigation is not decentralisation in the abstract but the fact that the record is complete, ordered and open to inspection. Every transfer carries an amount, a moment and a place in the sequence, and anyone can verify those details independently at any time. That is unusual: in most financial matters the record sits with an institution and has to be requested. Here the movements are public, which is why a route can be described years afterwards without asking anyone for permission.

The limits are just as important. The record shows addresses, not people, so a blockchain never states who acted. It also shows only what happened on that network, so an agreement made off-chain, a deposit at a platform or a payment in cash leaves no trace. And because entries cannot be corrected, a mistaken transfer stays visible and stays final. A useful report therefore separates what the chain proves, what an institution would have to add, and what remains unknown.

External sourceHMRC publishes an internal manual on cryptoassets that sets out the terminology it uses, including how it describes distributed ledger technology and the different token types. It is written for tax purposes rather than for investigators, but it is a helpful example of how a public authority defines these concepts in a way it is willing to apply. See HMRC: cryptoassets manual.

Your own situation

If you are reading this, you probably have a question about your own situation. That is exactly what Paucitas does.

The first step is contact by phone. We prefer to schedule that call through WhatsApp, so you do not have to wait. In the call we look together at what can factually be established in your case and what Paucitas can examine for you.

Go to the contact form