AI-based Crypto Transaction Monitoring for Businesses
AI-based Transactions Monitoring allows CeFi business to fulfill regulatory requirements. It allows DeFi Dapps to choose which addresses can interact with Dapp.
Crypto Transactions Monitoring is a regulatory requirement for all Virtual Asset Service Providers. It means verifying all platform incoming and outgoing transactions and not letting fraudulent accounts participate in the business transactions.
Transactions Monitoring is implemented in traditional finance via Artificial Intelligence; there is a lot of data for the AI-Algorithms - addresses, credit card histories, account histories, device databases, etc.
In the blockchain industry, however, we have only the blockchain address. All the enriched data which is available in traditional finance - all this data is missing in the crypto sector.
AI-based Crypto Fraud Score enables Transaction Monitoring for the CeFi (Centralised Finance) companies:
- This real-time API should validate all transacting addresses (incoming or outgoing).
- If addresses are flagged as potential fraud addresses, then additional verifications (sometimes manual verifications are required).
AI-based Crypto Fraud Score enables Transaction Monitoring for the DeFi (Decentralized Finance) companies:
- Validate the user addresses when they connect to your Decentral Application with this real-time API
- If addresses are flagged as potential fraud addresses, then do not allow the address to connect via Web3 API
SmartCredit.io has integrated AI-based Transactions Monitoring:
- All addresses which connect to the platform are analyzed with the AI-based Crypto Fraud Score API (https://swagger.smarttrust.io )
- If the address is classified as a potential fraud address, then the business transactions - like borrowing, lending, staking, or fiat conversion - are not enabled for the respective address
The current predictive power of AI-based Crypto Fraud Score is 98%. This means the algorithm predicts correctly in 98 cases of 100 fraud. It's not a forensic algorithm based on already listed "bad" addresses or other forensic analytics outputs, but it's a predictive algorithm based on the address interaction patterns.
Crypto Fraud Score is calculated only based on the transaction history. It supports Ethereum, Polygon, and Binance Smart Chain.
Every scam is different; there are unlimited potential scams or frauds. But scammers are using specific interaction patterns stored in their transaction history on the blockchain. Our artificial intelligence modules identify these interaction patterns and forecast the future behaviors of the addresses based on past interaction patterns.
- Crypto Transactions Monitoring is a regulatory requirement for CeFi companies.
- Crypto Transactions Monitoring helps to increase the security of the DeFi Dapps
- This medium article might be interesting too: "Free AI-based predictive Crypto Fraud Score launched!"