A Survey of Transaction Tracing Techniques for Blockchain Systems

Abstract

With the proliferation of new blockchain-based cryptocurrencies/assets and platforms that make it possible to transact across them, it becomes important to consider not just whether the transfer of coins/assets can be tracked within their respective transaction ledger, but also if they can be tracked as they move across ledgers. This is especially important given that there are documented cases of criminals attempting to use these cross-ledger trades to obscure the flow of their coins/assets. In this paper, we perform a systematic review of the various tracing techniques for blockchain transactions proposed in literature, categorize them using multiple criteria (such as tracing approach and targeted objective) and compare them. Based on the above categorization, we provide insights on the state of blockchain transaction tracing literature and identify the limitations of existing approaches. Finally, we suggest directions for future research in this area based on our analysis.