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Level 4: What is this world?

What is blockchain analysis and investigation?

The process of inspecting, identifying, clustering, modeling and visually representing data on a blockchain. Blockchain analytics can involve the use of software tools and open source information (OSINT) to analyze data on blockchain networks. These tools scrutinize transaction patterns, wallet addresses, and other data points on a blockchain to provide insights into the activities occurring on the network. Blockchain analysis is done for a variety of reasons from market analysis to investigating illicit activity.

Blockchain investigations are commonly conducted to uncover illicit activities such as money laundering, fraud, and the use of cryptocurrency in criminal enterprises. Investigations leverage analytics tools to track and identify this activity on-chain. The transparent nature of the blockchain allows for investigators to follow the flow of funds on the public ledger.

How It Works

  • Data Aggregation: collecting, compiling and summarizing information from various sources across blockchain networks

  • Pattern Recognition: identifying and interpreting behaviors and trends within the aggregated data

  • Forensic Analysis: systematically interpreting the aggregated data and recognized patterns to come to investigative conclusions

How It Works

  • AML compliance and regulatory reporting

  • Fraud detection

  • Security analysis

  • Market analysis

  • Enhance security and trust in blockchain networks

  • Aiding law enforcement to catch 'bad actors'