Blockchain Monitoring Tools Supplement Bitcoin and Crypto Adoption

Blockchain Monitoring Tools Supplement Bitcoin and Crypto Adoption

Crypto popularity is continuously building up even through the rise and fall in cryptocurrency value. Based on blockchain.com, 240,000 Bitcoin transactions have taken place everyday for the last 6 months. When Bitcoin and cryptocurrency first emerged, governments did not show great appetite to accept it as a payment method. Nowadays, news of new regulations and blockchain applications dedicated to cryptocurrency evolution are regular entertainment. This shift is susceptible to proving that Bitcoin and crypto are scalable and that enough people are contributing to its success.

The change in appetite does not essentially graduate Bitcoin and cryptocurrency as the new favorites in today’s finance. There may be many factors behind this eagerness to monitor and regulate Bitcoin and cryptocurrency transactions. So, what else is positive? That there are unsolved problems that fintechs, crypto businesses and law enforcement authorities are working to find solutions for. 

Cryptocurrencies are internet-based currencies that use blockchain technology to function. The blockchain records all transactions; however, blockchains do not store real-world identities. As a result, linking these actions with real-world actors and catching criminals is a constant struggle and one of those unsolved problems. For this reason, financial institutions, crypto businesses and law enforcement authorities are relying on blockchain monitoring technologies to contain and safeguard the financial activities carried out through crypto transactions


What is a blockchain monitoring tool?

Blockchain monitoring is the act of overseeing transactions occurring on the blockchain, whether it’s Bitcoin or a different coin. The monitoring activities include creating links between the initial point of the transaction (the sender) and the final point of the transaction (the receiver) as well as all the nodes in the middle. Blockchain monitoring helps regulators to ensure that the transactions are going inline with the current AML/CFT procedures, creating a safe haven for crypto businesses and revolutionary financial activities to take place. An untraditional couple in India set an example by recording their wedding ceremony and vows in the blockchain.

Blockchain monitoring also enables cryptocurrency businesses to make informed decisions about risk and embrace the benefits of crypto and enable transactions in an untraditional manner with a traditional level of security and risk management.

Because Bitcoin is a digital currency, all transactions are conducted online and are accessible to all. The blockchain is a public database of all Bitcoin transactions and it dates back to the beginning. This record is decentralized; each Bitcoin miner and crypto exchange stores a complete copy of that database. For the same reason, monitoring the data stored in the blockchain is available to everyone. Through blockchain monitoring, The FBI took down nefarious organizations like Silkroad when they managed to trace crypto transactions from the offline darknet market all the way to his laptop. At that time, blockchain monitoring tools had limited features and the journey was months long. Now, the cryptocurrency market has seen powerful new technologies that are constantly evolving and proving to be the answer to cryptocurrency balance and crime-free environment. Check our previous post to learn how QLUE can help solve financial crime.

Get in touch with us to learn more about blockchain monitoring and most powerful solutions used by financial institutions and law enforcement.

Written By: Omar Marzouk
Writer, Content marketing at Blockchain Group


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