Coinalytics struts its stuff in tracking the "laundering" of Moolah funds through the blockchain

Coinalytics has demonstrated a good example of a use case for its tools in an analysis exploring the movement of bitcoins in the ongoing Moolah saga.

Coinalytics is a startup creating tools to gain deep, sophisticated insights into Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term data. It was one of five bitcoin companies to be accepted into 500 Startups' incubator program, securing funding of $100,000.

It advertises the benefits of these tools insofar as their relevance to understanding what's going on in the Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term ecosystem. One can, for example, gain advance insight into potentially market-moving information. Here, however, they proved useful for forensics: where did the Moolah funds go and what are they being used for? While concrete answers weren't derived- and may never be- the analysis gets you much further than without it.

In the blog post, it shows how the bitcoin community, working together, can prevent these funds from getting "laundered" by blocking them from entering their platforms. To do this, businesses need to be able to know from where "dirty" funds may arrive.

Coinalytics' two tools in development are graph viewer and address tracker. They were used to find the whereabouts of 3701 bitcoins (= $1.3 million) originating from a single address, which is now empty.

With graph viewer, Coinalytics visually depicted how from its origin, BTC flowed to more than 250 addresses- but the top 10 received 1600 out of the 3701 bitcoins. Based on analysis of the top recipient address, two accounts were identified to be currently holding 700 BTC.

Address tracker comes into play by allowing you to enter any address and seeing how it relates to other addresses in a given time period.

The tools essentially automated what would have been a prohibitively tedious, cumbersome manual task of connecting the dots, and on top of that, piecing the puzzle together to form a hypothesis or draw conclusions.

A potential challenge- or opportunity- for Coinalytics is the advent of technology aiming to mask the flow of bitcoin transactions. In many cases, the technology splits a transaction into tiny parts, later recombined at their final destination but routed separately along the way. Herein lies an opportunity for Coinalytics: its tools can theoretically trace the pathways of these tiny parts to their start/end points. When transaction routes are even harder to track, the value-add over and above the manual/unsophisticated methodology is even greater.

They may hit a roadblock, however, when it comes to technologies that encrypt the addresses themselves in such a way that makes it impossible to connect the dots. Or, where the routing of a transaction becomes exceedingly complex and meaningful conclusions cannot be derived from the patterns recognized.