What Is Blockchain and How Does It Work?
There is always a bright side, in moving forward and building, and to compare blockchain analysis in tracking money and robberies in the traditional system versus the cryptocurrency system.
In traditional banking and fiat money, there is nothing like blockchain analysis directly, because the traditional system relies on centralized databases run by banks or financial institutions. When a robbery or fraud occurs, money is tracked through bank transaction records (such as wire transfers or banknote numbers if it is cash), and this process often requires cooperation between banks and law enforcement. But this tracking is not public or transparent to everyone, but rather limited to specific entities, and can be slow if it requires tracking money across different countries or financial systems.
In the case of blockchain, the record is open and transparent for anyone to analyze transactions, because every transaction is recorded on a public ledger. Companies like Chainalysis or Arkham Intelligence use advanced tools to analyze this data, allowing for faster and more accurate tracking of funds.
On blockchain, once a heist occurs, any person or analytics company can immediately track the funds on the network. For example, a famous investigator noticed suspicious transfers within hours. This transparency allows for a quick reaction.
In a traditional system, tracking down paper money or bank transfers can take days or weeks, especially if the money is laundered through multiple accounts or different countries.
The advantages of blockchain lie in its transparency and responsiveness, which makes it a revolutionary system for tracking money compared to the traditional system, but this transparency is a double-edged sword, as it also allows criminals to monitor the movements of the authorities against them. In the end, it depends on how the technology is used. Blockchain provides powerful tools for security and transparency, but it still needs to be developed to better protect against hacks.
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