Chainalysis presents “Know Your Transaction” tool

The new application of Chainalysis, KYT (“Know Your Transaction”), checks crypto transactions in real time. It supports companies and financial institutions in fulfilling KYC requirements. In addition to the blockchain of Bitcoin (BTC), the tool should also be able to read the transaction data of Bitcoin Cash (BCH). Chainalysis would like to integrate further crypto currencies.

In a blog post, Chainalysis, a company specializing in blockchain analyses, explained that the new tool (KYT) is intended to help clarify illegal activities such as money laundering. In order to implement compliance for the prevention of money laundering, financial service providers must be able to understand the intentions behind each individual transaction. Chainalysis KYT creates real-time feedback and sends it directly to the transaction processors of the respective financial institution or exchange. Compliance officers can create alerts and report suspicious activity via a dashboard. In the test run, the account checks allegedly ran twenty times faster than usual.

What do KYC and KYT mean for crypto trader?

The name of the tool Chainalysis KYT derives from the term “Know Your Customer” (KYC). Anyone wishing to offer financial services must comply with the KYC requirements of the relevant criminal authority. In other words, the financial services provider must know certain data about its crypto trader customers on government order in order to make illegal transactions like Is Crypto Trader a Scam? Beware, Read our Review First as difficult as possible. There are no international guidelines for KYC. However, basic data such as place of residence, dates of birth and nationality are always included. Most financial institutions also require photographic evidence of passports, tax IDs and/or social security numbers. Anyone who has already registered on a Bitcoin exchange knows this procedure.

Crypto analyses for banks and governments

The newly developed program, KYT (“Know Your Transactions”), now extends this principle to transactions in blockchains. Chainalysis intends to offer the new product to exchanges and financial institutions worldwide. So far their products only support the Bitcoin blockchain. In 2018, Bitcoin Cash and at least eight other crypto currencies will be added. At the same time, the company announced that the venture capital company Benchmark and its new general partner Sarah Tavel will support it with a Series A financing of 16 million US dollars.

Chainalysis has received much recognition from the law enforcement community for its central role in clearing up the Mt Gox hack. Since then, her clients have included the FBI, the DEA, Europol and related UN agencies. The analysis company’s products also include a tool called Reactor, which automatically locates linked wallets and transactions.

A pinch of salt

The analysis of the blockchain also leads to problems. The fungibility of Bitcoin could then finally say goodbye. Fungibility refers to the fact that the individual units of a currency are all the same. That means, they are worth the same amount and can be exchanged among each other arbitrarily. However, if the history of a Bit coin is known, some coins are “blacklisted” – i.e. they may no longer accept exchanges. This reveals a critical problem: How should a currency work if the units have different values?

SAPPHIRE 2018: Further Blockchain Adaptation with SAP

At the SAPPHIRE conference, SAP announced some blockchain-relevant news. The SAP Cloud Platform Blockchain was presented as Blockchain-as-a-Service platform. The company also announced the formation of a Blockchain consortium with well-known companies.

SAP has been quite active in the blockchain area for some time now.

Bitcoin news has written about this commitment in various places

At this year’s Bitcoin news conference, the SAP event of the year, the company presented three major innovations: Firstly, a blockchain consortium is to be founded with various other companies. Even more interesting is that the launch of the SAP Cloud Platform Blockchain was announced at this conference.

Finally, a presentation was held together with Modum in which Torsten Zube from SAP and Marc Degen from Modum jointly presented a use case. The cooperation between the two companies in return for the first two is not a complete novelty, but both companies will present the result of their cooperation at SAPPHIRE.

All innovations are aimed at supporting blockchain adaptation in the industry. A study by Gartner at the beginning of May showed that the majority of companies still have no interest or expertise in implementing the blockchain in their companies.

From SAP’s point of view, blockchain solutions that are easy to implement and a consortium of cross-company communication would be important steps in blockchain adaptation.

The Role of the Blockchain Consortium

The corporate world cannot simply be described as “we against all”. Even though different companies in the same industry are often competing against each other, there are always challenges that can best be tackled together. In a world with increasingly networked value chains, cross-industry communication is also necessary.

In terms of blockchain technology, such communication and cooperation is even more necessary. The trend in industry 4.0 also includes decentralized production, the backbone of which can form the blockchain. The realization of this vision of a network of supply chains requires the cooperation of various stakeholders.

SAP has therefore founded a worldwide blockchain consortium. The goal of this consortium is to advance blockchain adaptation in various industries by defining common industry standards. Besides SAP, A³ by Airbus, Hewlett Packard and Intel are co-founders of this initiative.

SAP Cloud Platform Blockchain: Blockchain Services for All
The aim of the SAP Cloud Platform Blockchain is to create a platform with which every SAP customer can quickly deploy blockchain technology in their company. With this platform, users can quickly write their own blockchain applications or extend existing solutions with a blockchain.

Both Hyperledger Fabric and MultiChain will be available as private blockchain solutions. Since SAP believes in a technology-independent approach, it is planned to integrate further blockchain technologies in addition to the two mentioned.

With the SAP Cloud Platform Blockchain and the founded consortium, the company is taking a further step towards blockchain adaptation.