Recursive Hop Tracing

Recursive Hop Tracing is a systematic method of following the movement of funds across multiple transaction layers on a blockchain. By programmatically traversing the graph of inputs and outputs, analysts can determine how assets are partitioned, consolidated, or transferred over time.

This approach is vital for tracing the proceeds of a hack or a large-scale transfer through various intermediary wallets. Each hop represents a transaction, and the recursive nature of the analysis ensures that complex chains of movement are fully captured.

It allows investigators to see through layers of obfuscation to find the final destination of assets. This capability is foundational to effective forensic investigations in the decentralized finance space.