Blockchain Analytics

Blockchain analytics, sometimes called on-chain analytics for compliance, is the practice of clustering and labelling public blockchain addresses to estimate who controls them and how funds have moved. Because most ledgers are transparent, analytics tools group addresses that appear to share an owner, attach labels such as exchange, mixer, gambling service or known theft, and produce a risk score for a given address or transaction. Regulated platforms use these scores to decide whether to accept a deposit, ask follow-up questions, or file a report. The technique is probabilistic rather than definitive: labels can be stale or wrong, and an innocent user may inherit risk simply by receiving coins that previously passed through a flagged service.