Blockchain & Cryptocurrency Glossary

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Forensic Analysis

1 min read
Pronunciation
[faw-ren-zik uh-nal-uh-sis]
Analogy
Like detectives analyzing CCTV footage and financial records to piece together the sequence of a bank robbery.
Definition
The systematic examination of blockchain data, transactions, and smart contract code to reconstruct events, trace funds, and gather evidence for security incidents or compliance investigations.
Key Points Intro
Blockchain forensics uncovers transaction flows and actor behaviors for legal or security purposes.
Key Points

Address clustering: Groups addresses controlled by the same entity.

Transaction graph: Visualizes fund movements across chains.

Smart contract audit: Reviews code for exploit vectors.

On‑chain evidence: Extracts logs, events, and Merkle proofs.

Example
After a DeFi hack, forensic analysts trace stolen ETH through mixers, identify withdrawal addresses, and collaborate with exchanges to freeze funds.
Technical Deep Dive
Tools parse full-node export of blocks, index UTXO or account transfers in Neo4j, and apply heuristics (change address detection, time correlation). Analysts use Etherscan APIs, chain analytics platforms, and proprietary clustering algorithms to map entity networks.
Security Warning
Forensic findings may be challenged in court; ensure chain of custody and reproducibility of analysis.
Caveat
Privacy techniques (CoinJoin, mixers) can hinder tracing; results may be probabilistic rather than certain.
Related Terms
Smart Contract Audit

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