Best Blockchain Analysis Software include:
What is Blockchain Analysis Software?
Blockchain analysis software monitors, classifies, and investigates blockchain addresses and transaction data. This information is used to manage financial risk, combat financial crimes, and to comply with regulations associated with cryptocurrency assets. It provides real-time risk scoring for blockchain transactions and security scoring for smart contracts.
The three major users of blockchain analysis software are:
Cryptocurrency businesses, also known as VASPs (Virtual Asset Service Providers). They use blockchain analysis software for fraud prevention, risk mitigation, anti-money laundering (AML), and to comply with local and global regulations. These businesses perform the transfer, exchange, safekeeping, and administration of virtual assets. They provide financial services related to the offer or sale of a virtual asset and for the exchange of virtual assets with fiat currencies.
Financial institutions use these products for risk management and AML efforts.
- Governments and regulators use these tools to investigate financial crimes.
Blockchain analysis software can trace the flow path, and determine the source, destination, and transaction amount of funds. This process is commonly referred to as “KYT” – Know-Your-Transaction. They can also help organizations discover the real-world identity of blockchain addresses, known as “KYC”– Know-Your-Customer.
Machine learning is used to identify fraud and evaluate the risk level of cryptocurrency assets and transactions. This is based on monitoring the behaviors of known malicious blockchain wallets and uncovering irregularities in transaction activities.
Blockchain Analysis Software Features
Automated transaction monitoring
Real-time risk scoring for VASPs, crypto wallets, and blockchain transactions
Traces and visualizes blockchain flow path
Determines source, destination, and amount of blockchain transactions (KYT)
Discovers real-world identity of blockchain addresses and wallet holders (KYC)
Crypto wallets scanning and forensics for AML and sanctions compliance
Cross-chain analytics across crypto assets and addresses
Security scoring for smart contracts by analyzing contract source code
Detects patterns of risky activity
Configure risk-based rules engine
Customizable real-time alerts
Prevents withdrawals to blacklisted addresses
Helps freeze deposits from hacks, scams, and ransomware
Integrated compliance workflow with audit trail
Captures data regarding VASPs, cryptocurrency addresses, and transactions
Crypto business profiling – assesses risk for VASPs (KYV – know-your-VASP)
Search capability for crypto addresses, transactions, entities, or events
Blockchain Analysis Software Comparison
Consider the following when purchasing blockchain analysis software:
Use Case: Blockchain analysis software includes a variety of tools supporting blockchain transaction and address monitoring, risk analysis, and investigations. Many vendors have products tailored for specific organizations, such as VASPs, financial institutions, and governments.
Vendors require that a price quote be obtained for their products and services. Blockchain analysis use cases and environments are highly variable, so most vendors will offer bespoke quotes to fit a given organization’s needs.
TokenAnalyst headquartered in London offers blockchain market intelligence, presented as enterprise-grade data and tools to understand and access blockchains. They present their products as transparent and actionable tools and data for Bitcoin, Ethereum and Stablecoins, that provide…
Crystal is a blockchain investigative tool from the Bitfury Group headquartered in Amsterdam. Designed for law enforcement and financial institutions, Crystal provides a view of the public blockchain ecosystem and uses analytics and data scraping to map suspicious transactions and…
Uppsala Security headquartered in Singapore built a crowdsourced Threat Intelligence Platform known as the Sentinel Protocol, which is powered by blockchain technology. Supporting the framework is a team of security analysts and researchers, who aim to deliver a safely interconnected…
ConsenSys presents Codefi as a blockchain application suite for next-generation commerce and finance. Codefi Orchestrate enables users to manage blockchain components through a single API—including blockchain nodes, networks, Ethereum transactions, account, private keys, blockchain…
Coinbase Analytics supports crypto compliance for governments, financial institutions, and crypto businesses, and connects cryptocurrency transactions to real-world entities using public blockchain attribution data, enabling users to monitor risk on millions of addresses. Users can…
Frequently Asked Questions
The main benefits of blockchain analysis software include:
- Compliance – risk mitigation and monitoring tools
- Surveillance and Investigations – traces money, identifies illicit actors, fraud patterns, and money laundering
- Assesses Financial Crime Risk
- Mitigates Third-party Risk Exposure
- Business Intelligence –helps estimate revenue and identify potential new crypto-related products and services