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Shadow blockchain, also known as shadowchain or shadow ledger, is a decentralized, distributed ledger technology (DLT) that is designed to be hidden or “shadowy” in nature. It is typically used for transactions or activities that are intended to remain private or hidden from public view.
Shadow blockchains are often used for transactions or activities that involve sensitive or confidential information, such as financial transactions, supply chain management, or the exchange of sensitive data. They can also be used for activities that are illegal or unethical, such as money laundering or the sale of illegal goods.
Shadow blockchains differ from traditional, public blockchains in that they are not transparent or open to the public. Instead, they are typically accessed and maintained by a smaller group of individuals or organizations who have been granted access to the shadow ledger.
Because shadow blockchains are not transparent or open to the public, they can be more vulnerable to fraud, manipulation, and other types of nefarious activity. They also raise concerns about privacy and security, as the lack of transparency makes it difficult to track and verify the authenticity of the transactions or activities taking place on the shadow ledger.