{"id":10303,"date":"2022-11-28T19:19:18","date_gmt":"2022-11-28T13:49:18","guid":{"rendered":"https:\/\/aayushbhaskar.com\/?p=10303"},"modified":"2022-11-29T13:33:15","modified_gmt":"2022-11-29T08:03:15","slug":"chainalysis","status":"publish","type":"post","link":"https:\/\/aayushbhaskar.com\/chainalysis\/","title":{"rendered":"Chainalysis – Building Trust In Blockchains","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

The world of blockchain & cryptocurrencies is construed to be opaque.<\/p>\n

That the Crypto space is riddled with bad actors and prone to be used by them to move ill-gotten wealth across jurisdictions, bypassing the strict compliance procedures employed by traditional financial institutions, is a widely held belief.<\/p>\n

As the blockchain is essentially underpinned by a distributed public ledger, this couldn’t be farther from the truth. Transactions aren’t opaque and instead extremely visible and transparent.<\/p>\n

The only issue then is that traditional institutions do not have the understanding of using this public data given the privacy-preserving features of cryptocurrencies. Enter Chainalysis, who have developed tools to do just that.<\/p>\n

If you are interested in the existential question as to how the trust deficit between governments \/ traditional finance & cryptocurrencies can be removed, read on!<\/p>\n

1. Chainalysis: An Introduction<\/h2>\n

1.1. The Company<\/h3>\n

\"Chainalysis\"<\/p>\n

Chainalysis<\/a> is a blockchain data platform, research outfit, and analytical software provider. They aim to develop and provide data and tools to government agencies, and private sector organizations in traditional finance & cybersecurity firms.<\/p>\n

This data, research & tool kit helps to extend the facets of the investigation, compliance, and market intelligence to the blockchain space. The Company suggests on its website that the work they do has been instrumental in solving several high-profile criminal cases.<\/p>\n

1.2. Leadership<\/h3>\n

The Company was founded by Micheal Gronager<\/a> (formerly COO at the Kraken cryptocurrency exchange) & Jonathan Levin<\/a> (an economist by training with several years of consulting experience with Governments & FTSE 100 companies). Apart from them, the Company boasts a global workforce from different nationalities and experience from a wide range of sectors.<\/p>\n

1.3. Investors<\/h3>\n

7 global venture capital firms with a focus on the tech sector and crypto space are currently backing the Company. These include Accel<\/a>, Addition<\/a>, Benchmark<\/a>, Coatue<\/a>, Paradigm<\/a> & Ribbit<\/a>.<\/p>\n

The most striking investment though is the one from GIC<\/a> which is an arm of the Singapore government that manages its foreign reserves. It is pertinent to note here that Singapore has been very welcoming of the Crypto space, but has equally been alert to ensure its rightful use. This investment<\/a> by GIC seems to be a step in that direction.<\/p>\n

2. Chainalysis: Coverage & Product Suite<\/h2>\n

2.1. Solution Verticals<\/h3>\n

The Company states that it covers the entire crypto space and all the assets therein. This is maybe impressive to those who don’t understand blockchain architecture. For those who do, every crypto asset and transaction exists on the blockchain, so no surprises here.<\/p>\n

The broad verticals that the company has defined for itself are as follows:<\/p>\n