- The API aims to address the growing problem of illicit crypto activity by allowing users to predict and prevent scams.
- Web 3.0 platform Alchemy has launched a Transaction Simulation API to prevent crypto scams by allowing developers to preview the impact of transactions before their execution on the blockchain.
- The API is being integrated by various Web 3.0 platforms, including Rainbow, Instadapp, and Pocket Universe.
On January 25th, 2023, the Web 3.0 development platform Alchemy launched a Transaction Simulation API that, according to the announcement, will be the “solution” for rampant crypto scams.
The product is purportedly designed to empower developers with a tool to project the impact of transactions before they are executed on the blockchain. The Transaction Simulation will reportedly present users with a transparent preview of transactions to ensure they perform as expected.
A thread by the official Twitter account for Alchemy revealed that the product is being integrated by a list of Web 3.0 players, including Rainbow, Instadapp, Pocket Universe, and more.
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Rainbow Alchemy It's important to us to stay up-to-date on the latest in web3 developer tools. We previewed Alchemy's new Transaction Simulation product and liked what we saw! Developers—you can learn more about Transaction Simulation here https://t.co/dR6IQ5ESTk https://t.co/hkJScnpiBMEthereum— Rainbow (@rainbowdotme) January 25, 2023
“Alchemy’s Transaction Simulation API will give Rainbow users a simple way to preview their transactions and understand exactly what will be transferred.”
Alchemy aims to present users with a safe transaction experience and to foster confidence in executing their transactions in the current crime-intensive climate.
Crypto Scams Hit an All-Time High
A crime report published by Chainalysis on January 12th, 2023, revealed concerning insight that illicit crypto activity volumes have reached “all-time highs” due to a surge in sanction designations and increased hacking activity.
Alchemy wrote that more than 4.5M transactions occur on the blockchain daily; of those transactions, they opined that 99% of users are not completely educated on the technicalities of smart contracts. The tweet further stated that in 2022, more than $5B was lost in crypto scams, hence the inspiration behind the Transaction Simulation API.
People send more than 4.5M blockchain transactions every daybut ~99% of people don’t know how to read themresulting in more than $5B lost in crypto scams in 2022 alone we’ve built a solution: pic.twitter.com/Gzdm5mxpqH— Alchemy | The web3 developer platform (@AlchemyPlatform) January 25, 2023
Tools for Smart Transactions
According to the official Alchemy website, Transaction Simulation offers the following benefits for users:
The tools may enable users to spot anomalies in transaction data ahead of time, predict the outcome, and take action on any necessary adjustments to yield the desired results. In essence, users will be able to spot a scam before it happens and avoid the financial implication of completing the transaction.
The API can potentially impact the volume of scams and increase the degree of safety concerning blockchain transactions.
On the Flipside
- The Transaction Simulation API will be tested in practice to determine the efficacy and accuracy of the tool.
- It remains to be seen whether the API will be adopted by users and present an encompassing solution for crypto scams.
- Regardless of the potential scam-prevention tool, due diligence remains the responsibility of each user to safeguard their valuable assets during transactions.
Why You Should Care
Crypto scams are a substantial risk for traders, and the increasing occurrences and volumes raise concern. It could greatly benefit the public to have an effective safety mechanism to protect their assets.
Read more about Alchemy’s Web3 development on Polkadot:
Alchemy Partners With Astar Network to Accelerate Web3 Development on Polkadot
Read more about scams in the crypto space:
6 Most Dramatic Pump and Dump Scams in Crypto History