A block explorer is a tool that retrieves blockchain data from a node and is tailored to monitor specific cryptocurrencies. Some services may provide multiple block explorers on a single platform.
Nodes gather all available data on the latest blocks and transactions and then transmit them to the web service, which compiles and formats the data for easy human interpretation. This enables users to monitor real-time activity and investigate historical transactions.
While simply monitoring and categorizing data to make it searchable is impressive, some block explorers offer more advanced features, such as charts illustrating metrics like hash rate, daily volume, and total unconfirmed transactions. Some block explorers may also be integrated with wallet or exchange services, while others offer a more minimalist approach. However, all block explorers should feature a live feed of network activities and provide seamless searching capabilities for transactions, blocks, and addresses.
A blockchain address is a unique digital identifier used for sending and receiving digital assets within the blockchain network. It is similar to an email address that allows you to send and receive emails. Each blockchain address is associated with a pair of cryptographic keys - a public key that is open to everyone on the network and a private key that remains confidential to the user. A block explorer can blockchain address lookup.
The primary purpose of a blockchain address is to facilitate transactions on a blockchain network. It serves as the destination or source of digital assets during a transaction. Blockchain addresses are created using complex cryptographic algorithms. When a user creates a digital wallet, a private key is randomly generated. From this private key, a corresponding public key is derived. The blockchain address is then created from a hash of this public key. Public and private keys serve as digital signatures for a blockchain address. The private key is confidential and used to sign transactions and access funds. The public key, derived from the private key, is shared with others in the network. It is used to verify the digital signature and confirm the authenticity of a transaction.
Crypto businesses need blockchain analysis solutions to protect their transactions against illicit activity, minimize financial crime risk and remain compliant with financial regulations including anti-money laundering (AML). Blockchain analytics companies identify, analyze, and cluster the data available on the public blockchain to evaluate financial risks, detect illicit activities, investigate crypto crimes, and track stolen crypto amongst other things. By deploying blockchain analysis solutions, crypto businesses can ensure compliance obligations are met within local jurisdictions, analyze and understand the level of risk exposure attached to the customer before onboarding them, and prevent the exposure of illicit funds to their businesses. Some of the popular blockchain analysis tools and companies include Chainalysis, Bitquery, and Merkle Science.