Chainalysis published a proposed ontology for blockchain analytics on Monday, aiming to standardize how investigators trace funds and identify wallet clusters controlled by the same entity. The proposal breaks down the concept of 'clusters' into components like wallet segments and deposit addresses, and introduces a two-tier structure for attribution confidence. Chief scientist Jacob Illum said the goal is to start an industry conversation about standards and improve data quality for investigations. The ontology was shaped by Chainalysis' experience in the DOJ case against Bitcoin Fog co-founder Roman Sterlingov, where its Reactor tool was validated in a Daubert hearing. However, Chainalysis acknowledges limitations: while it can link addresses onchain, identifying actual end-users requires additional off-chain information like subpoenas. The company expects feedback from the industry but has only held initial discussions with law enforcement groups.

Key facts

• Chainalysis proposes ontology to standardize blockchain analytics and clustering methods.
• Ontology breaks 'clusters' into wallet segments and two-tier attribution confidence.
• Proposal shaped by DOJ case against Bitcoin Fog; Reactor tool passed Daubert hearing.
• Chainalysis can link wallets but cannot identify end-users without off-chain data.
• Company seeks industry feedback but has only consulted law enforcement initially.

KeyAudit data perspective