Know Your Transaction (KYT)
What is KYT?
"Know Your Transaction" (KYT) is a compliance process mainly used to track and examine cryptocurrency transactions. It's a useful tool for identifying and preventing potential suspicious activities in user wallets, such as money laundering and financing of terrorism.
Objective
KYT's primary objective is to keep all transactions in line with applicable laws and compliance standards. It achieves this through live monitoring of user wallet activities. In addition, it helps us understand user transaction behavior, which ultimately improves risk management and compliance efficiency in the cryptocurrency arena.
Implementation
With the help of KYT, the zkMe Dashboard enables real-time tracking and analysis of transaction data, making it possible to spot and tackle any suspicious activities promptly. At present, zkMe Dashboard offers the capability to explore wallets on various networks including Ethereum, Polygon (MATIC), Arbitrum, and Base among other (see @KYT Supported Scope for the full list). We're planning to extend our support to even more networks in the near future.
Props
KYT not only assists in meeting legal and compliance requirements but also elevates a platform’s reputation and trustworthiness among users by minimizing the risks associated with suspicious transactions.
Get Started
To view a user's KYT details, navigate to the Dashboard page and locate the Details table. From there, select the wallet address that corresponds to the user you're interested in. This will redirect you to the KYT page.
Currently, we only support getting KYT information from the user's EVM wallet address. The page will not be redirected if you click on the Cosmos wallet address.
Useful KYT Widgets
Assets Held in Wallet
This widget enables you to access the asset details of the given wallet. The in-built chain selector within the component filters the supported chains, providing users with asset details on the relevant chain. Importantly, any adjustments to this chain selector will reflect on the data displayed in the remaining six widgets.
Overview
This widget serves as a concise overview of the wallet's transaction history on this chain. It provides key details such as balance, total transaction count, timestamps of the first and most recent transactions, and more.
AML Risk Score
An AML risk score is a measure assigned to an address, reflecting its blockchain interactions. This score offers users an understanding of potential suspicious activity. An address might be flagged as risky if it's associated with a high-risk entity (like a mixer), or if it has funds linked to a known risky entity. Simply put, you can assess the risks linked to each wallet address, much like a professional compliance officer, and determine if the wallet address holds unlawful funds.
The risk levels and their respective scores are assigned as follows:
Transaction Actions Analysis
Unlike regular blockchain browsers, the zkMe Dashboard processes all of a wallet's past transactions and presents the data in an easily understandable format. This evaluation splits the transactions into Incoming and Outgoing Transactions, and then further categorizes them based on diverse behaviors.
Address Labels
The Address Labels feature is designed to help users differentiate between various types of blockchain addresses, improving their transactional experience. With this feature, users can quickly recognize different entities like exchanges, smart contracts, and more specifically, the organization an address is associated with, such as Coinbase or Binance. It also reveals both on-chain and off-chain tags, including ENS, as well as the wallet software used, like MetaMask. This detailed labeling not only makes it easier to comprehend the addresses in question but also offers a clearer view of the blockchain environment they're engaging with.
Address Profile Analysis
The address profile analysis module is able to produce a comprehensive overview in a user-friendly format by examining all interactions tied to the address. Identify any malicious events linked to a specific address. Also, easily access further details related to an address, such as associated wallets, ENS identities, and related Twitter profiles.
Transaction Graph
This module presents a graph as a visual tool to illustrate the connections between all incoming and outgoing transactions for the queried address (defaults to the latest 1000 transaction records). You can filter and sort data directly on the graph, and you can also monitor selected pieces of information. Any suspicious activities will be distinctly highlighted on the graph, making it easy to track.
Additionally, for more detailed transaction information between sender and recipient, you can select nodes in the graph or the transaction number in the table on the right. This will provide data such as the transaction amount and time, and will redirect you to the corresponding blockchain explorer for further useful details.
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