Blockchain  Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term intelligence platform Chainalysis has onboarded three new clients from Australia, after having signed  Payments  Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. Read this Term provider Assembly Payments and cryptocurrency exchanges CoinSpot and CoinJar.

Westpac-backed fintech Assembly Payments will use Chainalysis Kryptos, which operates as a crypto-focused risk data clearinghouse for financial institutions. The solution helps them make more informed decisions about the cryptocurrency businesses they work with, offering a reference directory for related services and their on-chain activity.

Unlike competitors, Assembly's platform manages transactions across multiple payment types and countries, including mobile and point-of-sale, digital wallets, debit and credit cards.

The Aussie fintech will leverage Kryptos platform to parse regulatory hazards and build risk assessment models, as well as manage the complexities of offshore expansion given the different compliance issues between jurisdictions. Hence, Partnering with Chainalysis was the solution.

Chainalysis has also signed CoinSpot, one of Australia’s top cryptocurrency platforms by trading volume, and Coinjar, which claims to be the country’s longest-running digital currency exchange. According to their own figures, both exchanges now have their user bases topping one million, who use their services to buy, sell, store, and spend digital assets.

“Ensuring we have as many measures in place to protect CoinSpot customers from bad actors in the industry is a top priority for our business. We are strongly in support of promoting trust and compliance across the eco-system. Access to these data facilities is yet another instrument that enables CoinSpot to provide industry-leading customer service and security as Australia’s most trusted exchange.” said Russell Wilson, CEO at CoinSpot.

Record Volumes Boosts the Demand on Crypto Compliance

Chainalysis says the new partnerships arrive as prospects for cryptocurrencies are looking promising in Australia. As Bitcoin’s price more than doubled recently, the trading volumes set new records, more than tripling from last year to around $1 billion in monthly turnover.

The boom in crypto activity has prompted the Australian tax office to ask the nation’s cryptocurrency users to report their operations in order to verify tax compliance. Warning them of stiff penalties if they fail to report income or pay tax on crypto holdings, the ATO said over 350,000 individuals are expected to receive letters by mail or emails to 'remind them' of their obligations.

Thousands of Australian taxpayers across the country have already received instructions on how to accurately report their cryptocurrency-related income and amend their tax returns, if necessary.

These developments have created greater appeal for Chainalysis’ compliance software, which helps both crypto firms and law enforcement agencies detect suspicious activity in order to battle any related criminal activity. It uses pattern recognition, algorithms, and millions of open source references to “identify and categorize thousands of cryptocurrency services to raise live alerts on transactions involved in suspicious activity,” the company says.

Chainalysis’s team of data scientists and programmers are leveraging a wide range of quantitative data sources, including cryptocurrency exchanges and blockchain data sources, to clarify and present the view of the cryptocurrency and blockchain ecosystem.

“By leveraging the same dataset and suite of solutions trusted by regulators, law enforcement and payments providers in Australia, we feel confident that we are providing our customers with the best and safest possible platform to transact,” said Asher Tan, CEO, CoinJar.