Key Facts

• Chainalysis has published a proposed ontology for blockchain analytics work, outlining standards for investigators to identify clusters of crypto addresses and link them together, with the goal of creating a universal language for blockchain tracing.
• The ontology breaks down the concept of a "cluster" into different components, including wallet segments that can be used as deposit addresses, change addresses, or other functions, and presents a two-tier structure for attribution to these clusters.
• Jacob Illum, Chainalysis' chief scientist, stated that the proposal is intended to start a conversation about blockchain analytics and establish standards for reassuring investigators and prosecutors about the usefulness of the data they use in a case.
• Chainalysis used its experience in the U.S. Department of Justice's case against Roman Sterlingov, the co-founder of crypto mixing service Bitcoin Fog, to shape its ontology, which was tested in a trial and deemed "highly reliable" by Judge Randolph Moss.
• The proposed ontology aims to address the limitations of current blockchain analytics tools, which often rely on opaque and specialized methods for tracking funds, and provide a framework for investigators to assess the confidence of their analysis.