Chainalysis released DeFi and NFT transaction analysis tool

What’s new? Blockchain analytics company Chainalysis has released a web-based tool to track and visualize transactions in blockchain networks. Storyline reviews smart contracts that support decentralized finance (DeFi) and non-fungible tokens (NFTs). According to Chainalysis, these are two of blockchain’s most criminalized industries, with DeFi protocols already losing more than $1,68 billion to cybercriminals in 2022. The tool is in beta testing.

Chainalysis’ Storyline announcement

How will the new tool work? Storyline decrypts and visualizes complex transaction chains in NFT and DeFi protocols. According to the developers, they already had a tool called Reactor that analyzed common transactions in blockchains, but it could not decrypt more complex algorithms.

The main difficulty in tracking DeFi and NFT transactions is that the protocols allow switching between different types of cryptocurrencies within a single transaction and can include multiple smart contracts. Thus, when performing a token transfer, a large number of participants are involved, each of whom needs to be analyzed.

With Storyline, a timeline of interactions can be built that displays the movement of specific tokens.

Source: Chainalysis.com

“Storyline is able to interpret smart contracts and will automatically label common types of transactions like an NFT purchase or an asset swap. A user can quickly add additional related transactions in a timeline-based format with a transaction shown in each row and destination addresses — including those on new blockchains — as columns,” the company’s blog says.

What is known about Chainalysis? It is a software and services developer for government agencies, exchanges, financial institutions, and cybersecurity companies. Chainalysis’ solutions help to investigate and solve crimes in the field of cryptocurrencies.

Investors valued the company at $8,6 billion in the May funding round. Also in March, Chainalysis released a tool to track sanctioned wallets. The developers claim that the new tools are completely free and compatible with many programming languages.

What happened before? Seven major blockchain companies, including Binance.US, Circle, Solana Foundation, The Aave Companies, Hedera, TRM Labs, and Civic, teamed up to create a crypto scam reporting tool, Chainabuse. With the free service, users would be able to report potential scams and have real-time discussions. Chainabuse was officially launched on May 18.