Why is "data visibility" important in blockchain applications?

Data visibility is vital in blockchain applications because it empowers stakeholders to track and verify transactions in real-time, which, in turn, fosters trust among participants. In a blockchain network, every transaction is recorded on a public or permissioned ledger that can be accessed by authorized participants. This transparency means that any stakeholder can view the transaction history, ensuring that all parties have access to the same information.

When stakeholders can see the same data, it reduces disputes and miscommunications, as everyone is working from a single source of truth. The ability to verify transactions enhances confidence in the system, as it minimizes the risk of fraud and ensures accountability. Hence, trust is reinforced among participants, which is crucial for the smooth functioning of a decentralized network where no single party has control over the entire system.

While other options address various aspects of blockchain technology, they do not capture the essence of why data visibility specifically contributes to effective transaction verification and stakeholder trust.