CryptoTrace: tracking cryptocurrency transactions with blockchain technology

Abstract

The decentralised and anonymous nature of cryptocurrencies has made it difficult to monitor their activity, increasing the risk of money laundering, financing terrorism and other illegal acts. A new strategy has been suggested in this article to monitor Bitcoin transactions using blockchain technology. Blockchain is a secure, decentralised, and tamper-proof ledger of cryptocurrency transactions. The strategy involves taking transaction data from the blockchain and analysing it using data analytics and machine learning techniques. This allows for the identification of usage patterns and trends in cryptocurrency transactions without compromising anonymity. The strategy was tested on open blockchains like Bitcoin and Ethereum and was found to be effective in monitoring Bitcoin transactions and detecting suspicious activity. Financial regulators can use this method to track Bitcoin exchanges and spot any fraudulent or questionable activity. This study highlights the importance of monitoring cryptocurrency transactions using blockchain technology to identify and prevent illegal activity. The suggested strategy can also aid in reducing the risks involved in Bitcoin transactions, making it easier for cryptocurrencies to be adopted in a secure and controlled manner.