Blockchain analytics firm Chainalysis has released a brand new tool to trace transactions across Decentralized Finance protocols and multiple blockchains.
Chainalysis launched a beta form of its Storyline software on May 18. Touted like a “Web3-native blockchain analysis tool,” Storyline aims to trace and visualize smart contract transactions having a concentrate on nonfungible tokens (NFTs) and DeFi platforms. This really is using the growing recognition and prevalence of NFTs and DeFi within the cryptocurrency space in the last year.
Chainalysis provides blockchain analysis and annual reports on cryptocurrency crime trends along with other analytics. The ever-altering landscape has witnessed DeFi and NFTs become important cogs within the ecosystem, with Chainalysis estimating the 2 sectors account in excess of 1 / 2 of global cryptocurrency transactions.
A regrettable problem with this evolution may be the growing quantity of cryptocurrency-based crimes utilizing the industry-altering protocols. 2021 saw DeFi protocols process an growing quantity of value from illicit addresses while online hackers also started to focus on these platforms in efforts to take advantage of and steal funds.
The quantity can’t be understated either, using the Chainalysis estimating that DeFi protocols take into account 97% from the $1.68 billion price of cryptocurrency stolen in 2022. The firm also noted that the major number of DeFi hacks were transported out by North Korean hacking groups this past year.
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The task for cryptocurrency exchanges, DeFi protocols and investigators is tracking illicit transactions through DeFi protocols. The character of those platforms is complex, with automated smart contracts creating complex transactions, frequently across multiple blockchains.
A vital purpose of DeFi protocols is the opportunity to ‘chain-hop’, giving users the opportunity to exchange or move cryptocurrencies in one transaction. The entire process of purchasing an NFT also involves numerous moving parts, including different smart contracts across different marketplaces.
Storyline will enable users to construct their very own ‘story’ of the transaction path beginning having a transaction hash. After that, a period could be constructed with notable transactions and interactions of tokens.
An automatic feature enables the program to interpret smart contracts and label common transaction types like NFT acquisitions or token swaps. Users can also add related transactions and relevant addresses across blockchains which will help monitor specific addresses, tokens and transactions.