Know Your Entity: The new upgrade of KYT, comprehensive prevention and control of risky entities
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Know Your Entity: The new upgrade of KYT, comprehensive prevention and control of risky entities
Knowledge Graph Protocol 0xScope launches KYE, a Web3 financial risk control upgrade solution.
Navigating Web3 tides with focused insights
What is KYT (Know Your Transaction)?
KYT refers to checking financial transactions for fraud or suspicious activities, including money laundering. The general approach involves assessing the source of funds and identifying suspicious transaction behaviors to evaluate risk. Using KYT for risk control enables effective identification of risky funds, helps assess transaction risks, and detects transactions related to financial crimes such as money laundering and terrorist financing. KYT is also a component of anti-money laundering (AML) efforts.
As the industry evolves, hackers and fraudulent activities have become increasingly sophisticated, raising higher demands for risk prevention. The limitations of KYT in certain scenarios are gradually being exposed.
For example, while KYT focuses on fund flow risks, it struggles to comprehensively prevent risks associated with counterparties and their linked addresses and users. KYT primarily analyzes data at the time of transaction events, resulting in limited coverage and difficulty identifying risks embedded in historical data.
Given these limitations, 0xScope introduces a new Web3 financial risk control solution—KYE (Know Your Entity)—which enhances KYT by enabling comprehensive protection against risky entities.
Advantages of KYE (Know Your Entity)
Leveraging powerful address tracing capabilities, 0xScope quickly identifies high-risk addresses by detecting suspicious behaviors and then uses address clustering algorithms to uncover all other potentially risky addresses—enabling comprehensive risk identification and monitoring at the entity level.
After identifying high-risk addresses and entities, we aggregate and analyze all historical data, tracing back risks across past periods and fully disclosing them for use by projects and partners.
Currently, 0xScope has identified up to 20 million risky addresses, with continuous updates ongoing. These risky addresses fall into the following categories:
According to statistics, incremental risk exposure via address linkages alone can be over ten times greater than single-address risk. Combined with retrospective analysis of historical data, KYE significantly improves both the scope and efficiency of risk control compared to KYT. A single KYE query reveals a breadth of risk that is dozens of times greater than what was previously possible with KYT.
Comparison diagram:
KYE-related services are now live on 0xScope Developer at https://developer.0xscope.com/. For partnership inquiries, please visit the official website or email business@0xscope.com directly.
For more product details, please view the 0xScope B2B Service Deck.
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