Definition ∞ Onchain forensics involves the systematic analysis of transaction data and activity recorded on a public blockchain to trace the flow of digital assets. This discipline utilizes specialized tools and techniques to identify patterns, link addresses to real-world entities, and investigate illicit activities such as money laundering, hacks, or fraud. By examining the immutable ledger, investigators can reconstruct event timelines and identify involved parties. It provides a transparent audit trail for digital asset movements.
Context ∞ News reports frequently feature onchain forensics in investigations of major cryptocurrency hacks, scams, or regulatory enforcement actions. The ability to trace illicit funds on public blockchains is a key tool for law enforcement and compliance professionals. Discussions often highlight the role of onchain forensics in enhancing transparency and accountability within the digital asset ecosystem, despite privacy features of some cryptocurrencies.
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