Large financial institutions are increasingly interested in digital assets. They have proved this by putting money and time into researching blockchain analytics solutions. These huge institutions recognize the value of crypto analytics in exploring the potential future of digital assets.
Many specialists benefit from these instruments’ critical insights. These insights are usually related to how popular cryptocurrency is becoming, regulatory issues, and a thorough understanding of crypto transactions.
If we look at a few interviews with two key Elliptic members, Tom Robinson, Co-Founder, and Eray Akartuna, Senior Crypto Threat Analysis, we may learn more about their research into on-chain analytics use cases.
One of the most common topics is the usage of analytics tools, namely those connected to AML. AML stands for Anti-Money Laundering, which is a serious issue in the cryptocurrency industry. These technologies can assist firms dealing with cryptocurrency assets. These technologies assist organizations in remaining compliant with rules and avoiding fraud.
🔍 Institutions are diving into the world of digital assets, seeking detailed #blockchain analytics for crypto adoption. 🚀
— Walletor (@walletorapp) May 28, 2023
Performing an investigation on crypto firms is another useful application for such technologies. Based on blockchain transaction analysis, Elliptic’s Discovery solution provides risk profiles for crypto exchanges and other businesses. This enables cryptocurrency firms and financial institutions to get important information into the entities with which they trade.
AML is employed in both the crypto and regular banking sectors. However, there is a significant difference in transparency between the two. This transparency facilitates the tracking of finances. Using blockchain analytics technologies, you may also discover any possible involvement in illicit activity.
Artificial intelligence (AI) is another technology that has recently received a lot of attention. Elliptic, for example, has already begun to use AI to improve its tools and detect trends in blockchain networks.
As institutions actively use digital assets, mechanisms for safely monitoring the blockchain must be developed. The combined use of blockchain data and AI-powered solutions is likely to improve fraud prevention even more.
To summarize, the growing participation of financial institutions in digital assets necessitates the development of such technologies. These technologies are critical for enabling greater use of cryptocurrencies in a secure and regulated way due to their capacity to give transparency.