Chainalysis introduces its Web3 based blockchain analysis tool: Blog
Chainalysis has introduced its new, Web3-native blockchain analysis tool called the Chainalysis Storyline, aiming to visualise smart contract extensions, as per a Chainalysis blog.
As per the blog, decentralised finance (DeFi) and NFTs are two of the fastest-growing areas of cryptocurrency, with nearly half of crypto transactions involving a DeFi entity or an NFT or related types of smart contracts. Insights from the blog stated that over the course of 2021, hackers majorly targeted DeFi protocols for stealing cryptocurrency. DeFi protocols accounted for a growing share of all funds stolen from cryptocurrency platforms since the beginning of 2020, and lost the majority of it in 2021. On May 1, 2022, DeFi protocols constituted 97% of $1.68 billion stolen cryptocurrency in 2022.
Much of the cryptocurrency stolen from DeFi protocols went to North Korean based hacking groups, especially in 2022. Chainalysis storyline will look to bring simplicity to DeFi’s multi-chain world by allowing users to comprehend the blockchains of the Web3 era. Chainalysis reactor’s cross-chain graphing will help with the complexity, but tracking funds across blockchain based destinations takes time. DeFi transactions involve smart contracts which add to the complexity of their blockchain network.
The report’s data stated that the Chainalysis Storyline stool will provide view on the movement of funds and address transacted across blockchains, and allow investigators to concentrate on the transactions and funds that would matter for them. Its interface will allow users to focus on transactions, assets, and related wallets. Storyline interprets smart contracts and automatically labels common transactions such as an NFT purchase or an asset swap.
The Storyline tool will allow users to utilise the Chainalysis Reactor for viewing transaction histories and exposure profiles of individual wallets and services related to their investigations. The two tools will be used for working in conjunction for giving users a timeline of cryptocurrency flows in a DeFi environment, until the funds reach an end destination or compliant service.
(With insights from the Chainalysis Blog)