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What is Chainalysis?

Cybercrimes are on the internet, and crypto crimes are in the cryptocurrency landscape. Is there a way to stop them?

This article will introduce you to Chainalysis, a blockchain data platform that commits to providing crypto users with tools to navigate the cryptocurrency market safely. It will also walk you through how it solves crypto crimes.

Industry regulation is important, especially for industries involving property and those that drive national economic conditions. Cryptocurrency is a growing market that remains unregulated. Many people in the government still have no idea what cryptocurrency is, how it works, and how they affect certain aspects of society.

When cryptocurrency was launched, many people, including experts in traditional trading, dismissed the cryptocurrency as just another tech trend that would fade over time. But they were proven wrong. People are now recognizing the potential of blockchain technology on which cryptocurrency is built. Institutions are slowly implementing use cases such as voting via blockchain and tokenizing company shares.

For people who are not at the forefront of cryptocurrency evolution, having the ability to analyze the cryptography behind blockchain will help them appreciate the security and crypto anonymity.

Chainalysis drives that ability. It allows government bodies and institutions to analyze a certain blockchain system to ensure that their transactions are secure and not compromised. The process also makes it possible to investigate fraud and digital robbery; it involves a forensic application to analyze the system.

Its services can complement what cryptocurrency services offer to provide anonymity and security, such as UniJoin’s coin mixing service, called the CoinJoin technology.

Short History of Chainalysis

Chainalysis was launched in 2014 to spearhead the investigation of the hack of Mt. Gox, an old cryptocurrency exchange platform based in Japan. It was a big platform, handling over 70% of Bitcoins that existed during that time. It ceased operations when the theft of thousands of Bitcoin happened within its platform, resulting in the loss of millions of dollars worth of digital assets.

Subsequently, Chainalysis was vital in investigating a deep web black market called Silk Road. It was a marketplace for illegal drugs and services that grew so large that it quickly caught the attention of governing bodies.

Since its launch, Chainalysis has been helping fight cryptocurrency- and blockchain-related crimes. It has been around since Bitcoin first came into the global consciousness. Chainalysis grows as time passes, and Bitcoin continues to be more popular with the masses.

A cryptocurrency is a great tool for convenient money transfer and trading goods and services, but people who use it are also susceptible to illicit activities such as robbery and identity fraud.

Chainalysis was created to control these illegal activities. It offers data, services, and software to key institutions that are either victims of cyber and crypto crimes or have the power to control these crimes.

How Does Chainalysis Solve Crypto-Related Crimes?

Cryptocurrency is still in its early stages since it hasn't been fully adopted by institutions and companies worldwide, albeit its rapidly growing popularity. Chainalysis, in this case, helps improve the condition of most blockchain-based payment systems and attempts to solve crypto crimes through different applications of forensic investigations of finance and transactions. Blockchain technology also relies on a public ledger to store its transaction details, so Chainalysis also uses that information to pinpoint what and how crimes were conducted digitally.


There is a concept in Chainalysis called Know-Your-Transaction (KYT). When integrated into a blockchain system, an integrative API ensures that all transactions comply with strict local and global regulations. KYT, combined with other innovations in error detection and fraud deception, like intelligence software, can ensure that the blockchain system runs smoothly without deviation.

If KYT blacklists a wallet address, it enforces a strict rule to freeze the account, making it impossible for the flagged account to withdraw the money and convert it into fiat currency. KYT emphasizes the compliance framework of a blockchain system, and every step of the process that leads to a compliant decision is documented. It's easy to create a copy and transport the information to share it with appropriate institutions that will perform a full audit.

Chainalysis Reactor

As one of the most popular use cases of Chainalysis, the reactor functions as a search tool for investigations. Its purpose is to accurately research the background of a certain wallet by looking through similar information that a particular wallet is connected to, like social media and the dark web activities. A Chainalysis Rides a good amount of surveillance in so little time.

Chainalysis Reactor is also used to notify appropriate authorities of suspicious activities within a blockchain system.

Chainalysis Kryptos

New crypto projects launch almost every day, following the surge of popularity of leading cryptocurrencies like Bitcoin and Ethereum. The emergence of several innovations is also a factor in the crypto value volatility, ultimately translating to more danger to investors. One of the most important things to remember as an investor is always improving your risk management. Chainalysis Kryptos helps investors navigate the risks and go for a more reliable and stable strategy.

The main function of Kryptos is to constantly update its database of information that contains updated profiles of blockchain firms based on their Know-Your-Customer (KYC) system. When an update of a certain firm can potentially ruin the investor's funds associated with that firm, Kryptos provides them with an alert, making it extremely useful in all emergencies.

For instance, multiple events have compromised a centralized exchange platform after a hacking attack. To ensure that investors can pull out their digital assets before they get lost and stolen, Kryptos alerts them in real-time.

Chainalysis Data

Chainalysis has a huge database that contains profiles of exchanges and wallet addresses of cryptocurrencies it has analyzed. Bitcoin, for instance, is still currently the biggest cryptocurrency based on its high value. While its value stays at the top of the market, it also has the most analyzed blockchain system.

Chainalysis Data has already identified a lot of scams and other fraudulent platforms, many of which can be traced back to the sketchy corners of the dark web. The Chainalysis database is a tool that helps prevent crypto crimes. The database contains information on cryptocurrency wallets, transactions, and users. This information can be used to track illegal activity and prevent crime. The database is used by law enforcement agencies and financial institutions worldwide. Chainalysis has helped track down and prevent many crimes, including money laundering, terrorist financing, and child pornography. The database is constantly updated with new information, making it an essential tool in the fight against crime.


Chainalysis makes cryptocurrency a safer space to be adopted into the mainstream. It has been in constant cooperation with governments to impose certain regulations on cryptocurrency and ensure that the platform doesn't get exploited.

After all, cryptocurrency was born out of the idea that the market should be free. Having a free market also means you need to take measures to protect yourself from illicit activities like robbery and identity theft. Chainalysis makes it possible to form some control and get ahead of digital criminals.

Learning about Chainalysis first might be a good idea for beginners in the industry. It prompts you to learn more about protecting yourself and set up security measures, including the use of a bitcoin tumbler like UniJoin's, so you can avoid crypto crimes. Many people overlook this and jump into the industry without much knowledge about what they are doing.

Diving unarmed with knowledge is a serious mistake that you should avoid. Resources on the internet like Chainalysis's database help you make informed decisions. They provide you context and performance reports of exchanges, like whether or not they have been involved in the loss of digital assets of their customers recently or if they employ a solid security system in their servers.

Don't let these resources go to waste; make good use of these resources.

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