Definition ∞ The examination of financial transactions to identify patterns, anomalies, and potential illicit activities. In the blockchain domain, this involves tracing the flow of digital assets across public ledgers to assess compliance, security, and market behavior.
Context ∞ Transaction analysis is a vital tool for regulatory compliance, anti-money laundering efforts, and forensic investigations in the digital asset space. The transparency of public blockchains facilitates this analysis, although privacy-enhancing technologies present new challenges.
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