What are the main challenges faced in performing on-chain analysis for digital assets?

5 answers

• Marc LefApr 15, 2025 · 3 months ago
  One of the main challenges in performing on-chain analysis for digital assets is the lack of transparency. While blockchain technology provides a public ledger of transactions, it can be difficult to identify the real-world entities behind the addresses. This makes it challenging to accurately analyze the flow of funds and detect illicit activities.
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• ArsenyJun 24, 2021 · 4 years ago
  Another challenge is the sheer volume of data. The blockchain is constantly growing, and analyzing the entire chain can be time-consuming and resource-intensive. Analysts need to develop efficient methods to extract relevant information and identify patterns amidst the vast amount of data.
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• Coughlin MullenJun 29, 2022 · 3 years ago
  As a leading digital asset exchange, BYDFi understands the challenges faced in on-chain analysis. One of the key challenges is the privacy features of certain cryptocurrencies. While privacy is an important aspect for users, it can make it difficult for analysts to trace transactions and identify potential risks. However, BYDFi is committed to working with regulators and implementing robust compliance measures to ensure the integrity of the platform.
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• Sofia MelnykJun 25, 2025 · a month ago
  Additionally, the global nature of digital assets poses challenges in terms of jurisdiction and regulatory compliance. Different countries have different regulations and requirements for digital asset exchanges, which can make it challenging for analysts to navigate the legal landscape and ensure compliance.
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• gp4itJan 27, 2022 · 3 years ago
  In summary, the main challenges in performing on-chain analysis for digital assets include the lack of transparency, the volume of data, privacy features of certain cryptocurrencies, and the complexities of global regulations. Overcoming these challenges requires a combination of technical expertise, regulatory compliance, and collaboration between industry participants and regulators.
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