Quick take:
- Chanalysis has launched Storyline, the first blockchain analytics tool for Web3.
- The Web3 native analysis tool is designed to visualize smart contract transactions, including DeFi and NFTs.
- The new analysis feature will be able to automatically distinguish between and highlight NFT purchases and asset swaps.
Chainalyis is expanding its analytics ecosystem to include analysis tools for Web3. The company announced Wednesday the launch of Storyline, a web3-native blockchain analysis tool developed to visualize smart contact transactions for NFTs and DeFi.
Chainalysis is leveraging the expansive growth of NFTs and DeFi by providing tools and features that enhance user experience. The company reckons that nearly half of all NFTs and DeFi transactions involve smart contracts.
Chainalysis recently raised $170 million from venture capital investors to expand its fraud detection service to NFTs and decentralised finance products. The company thinks that its new service will help in curbing crime in the Web3 space by flagging illicit addresses.
Hackers are targeting DeFi protocols with malicious attacks through May 2022 accounting for 97% of the $1.68 billion worth of cryptocurrency stolen this year.
The Storyline analysis tool is meant to make more complex NFT transactions involving multiple smart contracts.
Chainalysis uses the NFT transaction above to demonstrate how multiple smart contract events can complicate a transaction.
“This transaction represents one wallet selling an NFT to another, there are multiple other smart contracts involved, which will therefore be reflected on the blockchain: OpenSea as the NFT marketplace, the NFT collection’s smart contract, both users’ proxy contracts, and a few others,” Chainalysis explained.
The company reckons that a person tracking the transaction will still go through all those events, even though their interest may only be the seller and the buyer of the NFT.
The Storyline analysis tool makes things simpler by providing a holistic view of the movements of all funds an address has transacted with across blockchains, whilst allowing investigators to focus on the transactions and funds that matter most.
The analysis tool can easily identify and distinguish NFT purchases and asset swaps, enabling it to label popular events. Users can also add related transactions in a timeline-based format, allowing investigators to know right away what tokens a wallet of interest swapped for and when.
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