Transactions

How Wavy Node monitors and analyzes on-chain transactions in real time

Wavy Node analyzes blockchain transactions in real time to detect suspicious patterns, fraud, and money laundering. Each analyzed address receives a risk score and a set of detected patterns.

How it works

1. Register addresses

   Add the relevant on-chain addresses for your project using the Addresses API. These are the wallets you want to monitor for compliance.

2. Scan for risk

   Submit addresses for analysis using the Scan Risk endpoint. The system traverses the transaction graph to detect suspicious patterns.

3. Review results

   Each address receives a risk score (0-100), a risk level, and a list of detected patterns with confidence scores.

4. Take action

   Based on the results, you can approve, investigate, or escalate. Wavy Node sends real-time alerts to your integration webhook when suspicious activity is detected.

Detected patterns

When analyzing the transaction graph, Wavy Node can identify the following suspicious patterns:

Pattern	Severity	Description
mixing	Critical	Use of mixing services to hide fund origins
peel_chain	High	Transaction chains to fragment and obscure funds
structuring	High	Splitting amounts to avoid reporting thresholds
round_tripping	Medium	Funds returning to origin after multiple hops
mass_wallet_creation	Medium	Coordinated creation of multiple wallets
wash_trading	Medium	Artificial transactions to simulate volume
exchange_hopping	Low	Rapid movement between exchanges to break traceability

Risk levels

Level	Score	Recommended action
Minimal	0-19	No action needed
Low	20-39	Passive monitoring
Medium	40-59	Investigation recommended
High	60-79	Priority investigation
Critical	80-100	Immediate action / regulatory report

Response example

{
  "address": "0xabcd...",
  "chainId": "1",
  "status": "completed",
  "riskScore": 45,
  "riskLevel": "medium",
  "riskReason": "Clustering pattern detected, requires investigation",
  "suspiciousActivity": false,
  "patterns": [
    {
      "type": "clustering",
      "confidence": 0.75,
      "severity": "medium"
    }
  ],
  "transactionGraph": {
    "rootAddress": "0xabcd...",
    "totalNodes": 1107,
    "totalEdges": 2000,
    "maxDepth": 3
  }
}

Addresses with riskLevel: "critical" should be reported to the regulator per applicable regulations. See Regulations for details.