But collating data also brings responsibilities to surface it in a clear, detailed manner. We’re not here to throw raw data at you. We’re here to empower informed risk-based decision-making and win the trust of traditional finance.
We collect data on everything in the digital asset ecosystem – from entities, and events, to wallets and tokens. This enables our clients to develop their knowledge and get comfortable with crypto data; and to harness the blockchain as a critical compliance function in its own right.
**We often get asked about how we collect our data; how we verify it; and how we use it. In practical terms our data is split into two parts:
The goal with our on-chain data, as with everything, is to provide clear and accurate tagging information. To do that we break our typologies into 40 possible categories (or Types), with a further 134 sub-types.
We now have a database of more than 230 million tagged wallets, comprising addresses tied to a range of services – from exchanges and DEXs to darknet marketplaces, mixing services and sanctioned entities.
Each wallet we identify is subject to an internal vetting procedure. This includes assessing the source of the data, cluster testing, and wallet screening for further validators on transaction patterns.
Where we cannot be certain that a tag is correct, we record it internally, but it is not displayed in our Explorer. We estimate these shadow tags constitute a further 10 – 20 million addresses in our systems.
**With some transaction monitoring tools, detailed information on an entity or event found while screening is often not available. This can lead to data misinterpretation, and may culminate in client rejection, off-boarding, or – in some cases – de-banking.
To do this, Hoptrail combines its on-chain tags with our off-chain generated profiles on entities and events – from exchanges and DEXs to hacks and sanctions events. So when you see a potentially risky wallet you can surface data on it immediately while browsing by clicking on that entity or event.
But this data isn’t just for high-risk events. We surface data on a wide variety of entities. Clicking on Binance in the Sources of Funds table above will bring up AML, regulatory, litigation, licensing, and financial data on the exchange too. Below displays the ‘Solvency Transparency’ and ‘Licensing’ information on the entity - all of which can be accessed while you browse the Explorer.
What’s Next?**
But there is far more that we are doing to enhance the accuracy of our entire data set, including the introduction on AI and some next-generation enhancements for Ethereum. Hoptrail will be publishing much more on our research and development work over the coming months.
*info@hoptrail.io_***.**