What can a cryptocurrency transaction actually prove?¶

A cryptocurrency transaction can prove that a network recorded movement or attempted movement of a particular digital asset under its rules.

Avoid the dangerous assumption¶

The dangerous assumption is that the transaction proves who sent the asset, who received it or why it moved.

Depending on the network, the record may show transaction hash, sending and receiving addresses, amount, token, fee, block number, confirmation status and timestamp.

It can establish that value moved between addresses or that a smart-contract interaction occurred.

It may also show how the transaction links to earlier and later blockchain activity.

The record can therefore support tracing and timeline analysis.

It does not automatically prove that either address belonged to a named person.

A custodial exchange may control the private keys for many customers.

One person may control several addresses, and several people may have access to one wallet or exchange account.

The transaction also does not prove informed consent.

Keys or account sessions can be stolen, shared, remotely controlled or used under deception.

Preserve the correct network, transaction hash, complete addresses, asset, amount, timestamp, confirmation status and explorer source.

Where tokens are involved, preserve the contract address as well as the token name.

Do not describe a transaction as final merely because it first appears on an explorer. Check its confirmation or network status.

When reporting, state what the blockchain records and keep ownership, control, purpose and knowledge as separate evidential questions.

Operational takeaway¶

Use the transaction to prove network-recorded movement between addresses and establish the people, accounts and purpose through separate provider, device and contextual evidence.