Understanding and Tracking the Cryptocurrency Transactions using Graph Technologies
Bitnine Global Marketing team
Fri Jul 05 2024
Cryptocurrency transactions have revolutionized financial exchanges in recent years. In this article, we'll explore the characteristics of these transactions and how graph databases can enhance their application.
By understanding the power of graph databases in managing transparency and analyzing transaction data, we can unlock new possibilities for various industries.
Bank vs. Cryptocurrency Transactions
System Difference between Bank and Blockchain Architecture
The image above highlights the difference between bank and virtual currency transactions. Bank transaction records are encrypted on the bank server and only viewable by related parties. In contrast, virtual currency transactions are released online for everyone to see, embodying transparency—a core value of blockchain technology.
This transparency can also be applied to other industries, such as trade, where it can detect data manipulation or fraud in advance.
Graph Databases and Transparency
Graph databases are efficient for managing transparency due to their ability to search and store relationships. They can quickly collect relationships, such as those between people who send and receive messages on social networks. Visualization tools and easy query languages make these relationships more visible and understandable.
So, what happens if you use a graph database to track personal cryptocurrency transactions?
There are situations where you need to track the flow of transactions or trace them back, especially when real-time coin transactions are complex and expanding.
Graph databases allow users to track and reverse relationships in these real-time expanding data. Tracking a transaction in a graph database means looking up a transaction relationship of interest. Let's see how this lookup differs between existing databases and graph databases.
The image above shows two inquiry situations: inquiry and extended inquiry. There's no performance difference in a simple query situation (a) between existing databases and graph databases. However, when inquiring about relationship information (b), graph databases show significant speed differences by only needing to retrieve the necessary relationships, unlike existing databases that re-examine and join many tables.
When tracking highly relevant virtual currency transactions, users can effectively expand and track relationships. This extended query can explore both the backtracking and net tracking of transactions according to the transaction flow.
Fraud Detection and Money Laundering
A representative use case of fraud detection in the virtual currency ecosystem is distributing stolen virtual currency assets for money laundering. Visual representations of transaction relationships enable fast problem-solving.
In conclusion, using a graph database in virtual currency transactions allows intuitive examination of the 'transaction relationship' using open transaction information. A graph database, specialized in relationship management, is the best tool for observing and analyzing virtual currency transactions.
Implementing Graph Database Technology for Cryptocurrency Transactions
(1) Data Collection
Data Collections from Blockchain Network
Collect cryptocurrency transaction data, including sender account, recipient account, transaction amount, time, fee, and unique transaction key.
(2) Graph Model Design
Data Collections from Blockchain Network
Design a graph model schema to store cryptocurrency transaction data. The main entities are 'Account: Node' and 'Transaction: Edge,' representing transaction relationships between accounts.
(3) Building a Graph Database
Application Prototyping
Load data into the graph database based on the graph model schema. Use Cypher queries for time series analysis, pattern matching, and inflow statistics.
(4) Application Development
Graph Database Building
Develop an application with a UI for users to navigate and analyze data. Visualize transaction graphs, wallet information, remittance tables, and time-series charts.
How to Track Cryptocurrency Transactions
Enter the Wallet ID
Start by entering the wallet ID in the upper left corner of the screen
Explore Transactions
On the screen, you will see various transactions made between wallets. These transaction relationships are represented in graph form, allowing for intuitive visualization of the transaction flow
Detailed Transaction Records
The table on the right records detailed transactions with other wallets. This includes the volume of transactions shown in a time-series chart. Users can check the time and date, as well as whether the virtual currency has been bought or sold through this chart.
By following these steps, you can effectively build and track cryptocurrency transactions using graph database technology.
Interested in visualizing and managing your industry's transactional data using graph database technology?
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