What is Traceability?

Traceability refers to the degree to which a third party is able to track the details of a transaction, such as the transaction amount or the identities of the involved parties. Blockchain-based projects approach traceability in different ways. For example, non-fungible tokens (NFTs) following the ERC-721 standard are created to maximize traceability, while projects like Monero have designed systems that obfuscate user accounts and transactions from external viewers in an attempt to remain completely untraceable.