The course chart has become almost a screensaver on the desktop of many crypto investors. Of course, price is important, but there is also technical forecasting based on historical data. But currency valuation can also occur based on fundamental factors and as a result of blockchain analysis.

What is blockchain analysis?

The blockchain risk analysis is a series of processes that involve understanding, classifying and monitoring blockchain transaction data that helps to understand the actions of various blockchain participants. Blockchain analysis consists of several solutions such as tools for transaction monitoring, risk assessment, and investigation. Blockchain tools link real transaction IDs to their specific addresses to analyze transactional activity. They also help assess the risk based on the risks of transaction funds based on their origin and nature, cash flow, and the history of the sender’s and recipient’s virtual wallets. 

Using blockchain tools, you can also manually visualize transactions by address. Analysis software uses techniques such as clustering, web scraping, and database fraud monitoring to identify entities such as payment processors. 

Using blockchain analytics

The most important use case for blockchain analytics is to regulate the cryptocurrency business and the financial institution space. The use of blockchain analytics helps them meet requirements and mitigate risk. This prevents criminal and fraudulent cryptocurrency exchange and money laundering. He also assists in surveillance and monitoring to stop the conversion of funds into fiat money. With these surveillance services, a strong KYC policy can be implemented to help identify the real perpetrator. Organizations use blockchain analytics to improve protection against such fraud and identify suspicious or risky customers. The functionality of the tool also includes data modeling, which helps make cryptocurrency markets and transactions more secure for everyone. Many IoT device companies are planning to combine blockchain analytics with IoT to enable smart contracts across IoT devices using a distributed network. Blockchain analysis can also stop the spread of misinformation on the Internet. Its transparency and immutability can help you understand how the data came about and who owns it. 

Industries using blockchain analytics:

• Transport: monitoring and coordinating routes, determining the correct mode of transportation using blockchain analytics.
• Healthcare: safer sharing of patient data online.
• Banking: Tracking cryptocurrency transactions, ensuring secure settlements and safer cross-border transactions.
• Retail & Manufacturing: End-to-End Tracking for High Accuracy Supply Chain Management. 

Summarizing

As user privacy and security becomes more important and a concern, technological advances such as blockchain analysis are becoming a security boon. Blockchain analytics software is essential for the sustainability of cryptocurrency transactions and will play a vital role in identifying related criminal activity. Thus, thousands of enterprises have started using these tools to prevent crime and improve the security of their transaction space.