Coinalytics Raises $1.1 Million for Blockchain Data Platform
Coinalytics has raised $1.1m as part of a seed round led by Palo Alto-based incubator The Hive.
Founded in April 2014, Coinalytics describes itself as a "real-time intelligence service" for blockchain platforms. Today, the startup enables clients in the bitcoin industry, including undisclosed payment processors, wallet providers and exchanges, to conduct risk assessment through blockchain analysis.
Coinalytics CEO Fabio Federici told CoinDesk:
"We're not building the infrastructure. But, if someone is accepting bitcoin, we can provide them ways to understand their users better."
Federici explained that by using the blockchain and its in-house tools for pattern recognition and real-time online learning, clients are able to accept bitcoin transactions before they are confirmed by the payment system's mining network.
"We analyze the inputs of the transaction, the structure of previous transactions and pull in metadata around those inputs to get a feel for whether the customer is reliable," Federici said.
A graduate of 500 Startups, the company had originally sought to apply its data analysis for bitcoin traders. However, Federici suggested that as the industry shifted toward an interested in blockchains more broadly, his startup moved with the direction of the market.
"Most of the demand was more about the blockchain and trying to get insights from the blockchain, so we decided to focus on blockchain only," Federici told CoinDesk.
Today, the three-person company offers APIs and front-end interfaces for clients. Coinalytics indicated it is seeking to use its funding to expand its platform for use in financial services, supply chain management and the Internet of Things.
Analytics image via Shutterstock
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