Baseledger includes a solution for providing transactional privacy for users, while maintaining accountability against local regulations. This means that transactions are processed without exposing the identity of the sender or receiver. In case of encrypted transfers, the sender and receiver are the only parties that can see the actual amount of a transaction. If a suspicious transaction or set of transactions is detected or in case of a legal conflict, the real-world identity of the users can be revealed to qualified authorities with the help of anonymity revokers and identity providers. Moreover, if a specific real-world identity is suspected of malicious behavior, anonymity revokers and identity providers can help trace the accounts of that user.