Top 10 Chainalysis Alternatives

Discover the Best Blockchain Analytics Tools for Compliance and Tracing

The recent hack of WazirX, one of India’s largest cryptocurrency exchanges, has underscored the urgent need for effective tracing and labeling tools in the crypto space. With a staggering $235 million stolen, this incident highlights vulnerabilities in digital asset security and emphasizes the importance of robust tracking solutions to prevent future breaches. As the cryptocurrency market expands, the demand for reliable analytics tools has never been greater.

Chainalysis has emerged as a prominent player in this landscape, offering comprehensive blockchain analysis services that help businesses and law enforcement trace illicit activities and ensure regulatory compliance.

However, as the crypto ecosystem evolves, so too does the need for alternative solutions that can provide similar, if not superior, capabilities. Whether driven by cost considerations, specific feature sets, or a desire for innovative approaches, many organizations are now seeking alternatives to Chainalysis that can better meet their unique needs.

This article explores the top Chainalysis alternatives, starting with Bitquery Moneyflow, which is recognized for its powerful features and versatility. We will also highlight other noteworthy options, including Elliptic, CipherTrace, Crystal Blockchain, Blockseer, and Lukka, each offering distinct advantages tailored to various applications.

Top Chainalysis Alternatives

As the demand for blockchain analytics tools grows, several alternatives to Chainalysis have emerged, each offering unique features and capabilities. This section will provide a detailed look at the leading alternatives, starting with Bitquery Moneyflow, which is gaining traction for its robust functionality and innovative approach to blockchain analysis.

Bitquery Moneyflow

Bitquery Moneyflow is a blockchain investigation platform that provides users with a comprehensive toolkit for tracking commingled funds and analyzing cryptocurrency transactions.

Key Features

Real-Time Transaction Tracking

Moneyflow’s continuous syncing capability provides up-to-date insights into cryptocurrency transactions, enabling AML professionals to identify suspicious activities in real-time. This allows for quicker intervention and investigation of potentially illicit funds.

Cross-Chain Analysis

In today’s complex crypto ecosystem, funds often move across different blockchains. Moneyflow’s ability to track these cross-chain transfers offers a holistic view of an asset’s journey, making it easier to identify patterns and red flags that might indicate money laundering attempts.

Enhanced Mixed Funds Tracking

Moneyflow offers multiple accounting methods for tracking mixed funds, which are funds originating from various sources. This enhanced tracking capability allows AML professionals to trace the movement of potentially laundered funds more effectively and identify the source of these funds.

Moneyflow takes mixed funds tracking to the next level by offering various accounting methods for fund selection like FIFO, LIFO and so on.

This flexibility allows users to trace the identity of mixed funds more effectively than tools with limited accounting options. Each method provides a different approach to tracing the identity and allocation of specific funds within a pool of intermingled resources, giving investigators the power to choose the most appropriate method for each unique case.

Address Labeling & Entity Resolution

Moneyflow excels in identifying and categorizing blockchain entities, providing valuable insights into the nature of transactions. Its advanced address labeling and entity resolution capabilities allow users to:

– Identify and classify addresses associated with exchanges, wallets, and other services

– Group-related addresses to form a comprehensive view of an entity’s activities

– Detect patterns and relationships between different entities on the blockchain

This feature is crucial for understanding the context of transactions and identifying potential risk factors associated with specific addresses or entities.

Transaction Filtering Based on Amounts

FATF (Financial Action Task Force) indicators help detect potential money laundering activities. Using Moneyflow, users can filter transactions based on specific amount thresholds, which can help identify:

– Structuring attempts (multiple transactions just below reporting thresholds)

– Unusually large transactions

– Patterns of transactions that match known money laundering techniques

By leveraging these FATF indicators, Moneyflow helps users focus on high-risk transactions and allocate their investigative resources more efficiently.

Automated Tracing From/To an Address

Moneyflow streamlines the investigation process with its automated tracing feature. Users can:

– Trace the flow of funds from a specific address, following the money through multiple hops and across different cryptocurrencies

– Trace backward to find the source of funds sent to a particular address

– Set parameters for the trace, such as the number of hops or specific time frames

This automated tracing capability significantly reduces the time and effort required for complex investigations, allowing analysts to quickly understand the flow of funds and identify potential points of interest.

By combining these advanced features, Bitquery Moneyflow offers a powerful and versatile solution for blockchain analysis, particularly suited for AML, fraud detection, and investigative purposes. Its comprehensive approach to transaction tracking, entity resolution, and risk assessment makes it a strong alternative to Chainalysis for organizations seeking robust blockchain analytics capabilities.

Top 10 Crypto Investigation Tools 2024 – CoinCodeCap

Elliptic

Elliptic provides advanced blockchain analytics solutions, combining cutting-edge technology with comprehensive crypto-asset intelligence. Their platform stands out for its focus on regulatory compliance and risk management, particularly in the realm of Virtual Asset Service Provider (VASP) tracking.

Elliptic employs artificial intelligence (AI) to analyze cryptocurrency networks for suspicious transactions and activities. This enables users to detect and trace unusual transactions back to their origin. Leveraging blockchain technology and proprietary risk algorithms, Elliptic’s tools monitor transactions for potential illicit activities, including money laundering and terrorism financing.

Focus: Crypto compliance, risk management, and VASP intelligence

Key Features:

• Blockchain transaction monitoring and risk assessment
• VASP screening and due diligence tools
• Wallet screening for sanctions and other risk factors
• Investigative capabilities for tracing illicit funds
• Travel Rule compliance solutions
• Machine Learning Capabilities: Advanced algorithms for detecting suspicious activities and emerging patterns.
• Customizable Risk Scoring: Tailored models adjustable to specific risk appetites and compliance requirements.
• Geographic Coverage: Insights into crypto regulations across multiple jurisdictions.
• Regular Threat Intelligence Updates: Frequent updates on new threats and malicious actors.

Ideal For: Financial institutions and law enforcement agencies.

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Crystal Blockchain

Crystal Blockchain offers a user-friendly blockchain analytics platform that combines powerful analysis capabilities with intuitive data visualization. Their solution is designed to make complex blockchain data more accessible and actionable for businesses and analysts. The flagship product Crystal Expert, offered as a SaaS or API, is a cloud-based blockchain monitoring and investigation solution featuring case management, monitoring, visualization, and tracking tools. For those preferring an on-premise solution, they provide Crystal PRO.

Focus: User-friendly analytics and visualization.

Key Features:

• Intuitive interface for tracking transactions
• Risk assessment and compliance reporting tools
• Strong data visualization capabilities
• Token Investigation Tool: This tool analyzes token contracts and identifies potentially fraudulent activities.
• API Customization: Flexible solutions for integration with existing systems.
• Forensic Services: Professional investigation services for complex cases.
• Interactive Learning Resources: Tutorials and workshops to maximize platform capabilities.

Ideal For: Businesses and analysts seeking accessible data insights.

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Blockseer

Blockseer offers a suite of blockchain intelligence tools with a standout feature called Blockseer Freeze. This innovative solution provides early notification of transactions on the blockchain network before they are locked in, allowing for proactive measures to be taken. By integrating advanced analytics with proactive transaction control, Blockseer positions itself as a unique player in the blockchain compliance space.

It analyzes cryptocurrency flows through wallets, offering features such as creating private labels, generating graphs, receiving alerts on suspicious transactions, accessing an expanded list of labels and clusters, and utilizing additional analytics tools.

Focus: Blockchain intelligence and compliance.

Key Features:

• Tracking of cryptocurrency flows through wallets
• Alerts on suspicious transactions
• Extensive list of labels and clusters
• Creation of private labels and graphs
• Machine Learning for Pattern Recognition: Advanced algorithms for identifying complex patterns and anomalies.
• Blockseer Pool: Mining pool processing transactions only from vetted sources.
• Customizable Alerts: Personalized alert systems for specific transaction types or wallet activities.
• Historical Data Analysis: Tools for analyzing long-term blockchain data patterns and trends.

Ideal For: Organizations needing to track illicit activities and ensure compliance.

How to Conduct Blockchain Analysis for Free – Bitquery

Lukka

Lukka offers comprehensive AML and risk management solutions for digital assets. Their platform is designed to help cryptocurrency exchanges and financial institutions navigate the complex regulatory landscape of the blockchain industry.

Focus: AML compliance and risk assessment.

Key Features

• Extensive analytics tools for monitoring transactions
• Risk assessment capabilities for digital assets
• Enterprise-Grade Data Management: Robust solutions for institutional-grade crypto operations.
• Tax Reporting Tools: Specialized tools for crypto tax reporting.
• Valuation Services: Cryptocurrency valuation services for financial reporting and risk management.
• Lukka Prime: Proprietary fair market value pricing methodology for cryptocurrencies.

Ideal For: Exchanges and financial institutions navigating regulatory complexities.

10 Best Blockchain Analysis Tools – Bitquery

TRM Labs

TRM Labs provides a comprehensive blockchain intelligence platform that enables organizations to detect crypto fraud and financial crime. Their solution is designed to meet the evolving needs of financial institutions, cryptocurrency businesses, and government agencies in managing digital asset risks and compliance.

Key Focus: Crypto fraud detection, risk management, and regulatory compliance

Key Features:

• Cross-chain fund movement tracking
• Real-time screening against global sanctions lists with automated blocking capabilities
• AI-powered system for detecting suspicious patterns and anomalies
• Customizable Risk Scoring Framework
• NFT Risk Assessment: Specialized tools for assessing risks in NFT transactions and marketplaces.
• Forensic Node Infrastructure: Network of full nodes across various blockchains for accurate, real-time analysis.
• Bridge Monitoring: Specific tools for monitoring cross-chain bridges.
• Regulatory Reporting Templates: Pre-built templates for generating compliance reports.

Ideal For: Cryptocurrency businesses, financial institutions, and government agencies requiring advanced blockchain intelligence for compliance, fraud prevention, and investigations.

These alternatives each provide unique features and capabilities, making them valuable options for organizations looking to enhance their blockchain analytics. As you consider your options, keep in mind the specific needs of your organization to find the best fit.

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Factors to Consider When Choosing the Right Alternative

When selecting an alternative to Chainalysis, it’s crucial to consider several key factors that align with your organization’s specific needs and requirements. Here are some important aspects to keep in mind:

Blockchain Coverage

One of the primary factors to consider is the range of blockchains supported by the analytics platform. Coinpath, for example, offers extensive coverage of various cryptocurrencies, ensuring that users can monitor transactions across multiple networks seamlessly. Look for a solution that provides the necessary blockchain support for your business operations.

Counterparty Info and Entity Resolution

Accurate identification of counterparties and entities involved in transactions is essential for effective compliance and risk management. Evaluate the alternative’s capabilities in this area, as platforms like Coinpath excel in providing detailed counterparty information and entity resolution.

API and Integration Capabilities

Consider the alternative’s API access and integration capabilities, as this will determine how easily the analytics tools can be incorporated into your existing systems and workflows. Coinpath offers robust API access, allowing for seamless integration and enhanced operational efficiency.

Pricing and Scalability

Assess the pricing structure and scalability of the alternative to ensure it aligns with your budget and growth plans. Coinpath® offers flexible pricing options and scalable solutions to accommodate businesses of various sizes and needs.

Customer Support and Documentation

Evaluate the quality of customer support and the availability of comprehensive documentation provided by the alternative. Look for a platform that offers responsive support and clear, well-organized documentation to help you navigate the analytics tools effectively.

Compliance with Regulations

Ensure that the alternative you choose is compliant with relevant regulations in your industry and jurisdiction. Coinpath prioritizes regulatory adherence, making it a suitable choice for businesses operating in heavily regulated environments.

Data Accuracy and Update Frequency

Data accuracy and update frequency are crucial factors that can impact the reliability of your analytics. Coinpath is known for its commitment to data quality and timely updates, ensuring that users have access to the most accurate and up-to-date information.

Visualization and Reporting Tools

Effective data visualization and reporting capabilities can greatly enhance the usability and actionability of blockchain analytics. Coinpath offers advanced visualization that transform complex data into intuitive charts and graphs, making it easier for users to interpret and act upon the insights.

By considering these factors and aligning them with your organization’s specific needs, you can make an informed decision when selecting an alternative to Chainalysis. Coinpath stands out as a leading choice, offering a comprehensive suite of features and capabilities tailored to the evolving demands of the blockchain analytics landscape.

Summing up

The crypto world is changing fast, and cases like the WazirX hack bring to the forefront some of the major requirements in the industry: strong security and compliance. Choosing the right blockchain analytics tool is not an easy task.

Many factors have to be taken into consideration, including blockchain coverage, API features, pricing, accuracy of data, and regulatory compliance. The ideal tool is one that ideally aligns with the organization’s needs, budget, and goals for improving security while adhering to the regulatory requirements. Businesses should be abreast of the times with regard to tools and technology so that they may move about effortlessly in the crypto ecosystem, avoiding all sorts of risks.

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Written By Harshil

Top 10 Chainalysis Alternatives was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.