Transaction Simulation Doesn't Work: What to Do Instead

Transaction simulation, the process of simulating a transaction prior to execution, has risen in popularity as the de-facto “security” coverage that keeps you safe on chain. But does transaction simulation actually keep you safe? With the number of hackers able to circumvent current tx simulation technology, is it actually enough to protect your platform and end-users?

Let’s dive in.

Transaction Simulation vs. Risk Scoring

Transaction Simulation is a technical approach that executes a "mock" version of a transaction to predict its outcome. Developers and platforms use this to:

• Identify potential issues, such as failed transactions or unintended side effects.
• Understand gas costs and transaction behavior.
• Ensure token transfers or contract interactions are functioning as expected.

While transaction simulation focuses on isolated interactions with the blockchain, true security encompasses the entire picture. Who are you trading with? Where has that address been? What’s the risk associated with the token you’re about to trade? Safety on chain goes a lot deeper than transaction simulation, and in this era, it's not nearly enough. 

Compare this to Webacy’s Risk Scoring powered by our aggregated risk engine. Our APIs offer a holistic risk assessment by analyzing blockchain addresses in-depth. Webacy’s risk engine scores addresses based on:

1. Financial patterns: Anomalies, holder analysis, deployer risk, sudden spikes in activity and volatility, draining patterns, locked LP, and more.
2. Behavioral history: Past interactions with known scams or risky protocols, related addresses, funding accounts, fund flow, screening, and more.
3. Historical context: The lifespan and transactional frequency of an address, historical volume, trustworthiness over time, ecosystem attention, and more.
4. And many other factors

The result is a detailed safety score that helps platforms and users decide if interacting with an address is worth the risk.

So if you had to choose which analysis you wanted, which one would it be?

Using Webacy APIs to Screen Blockchain Addresses

Webacy APIs make it simple for platforms and developers to proactively protect themselves and their users by screening blockchain addresses. Here’s a quick guide to integrating Webacy APIs into your workflow:

Step 1: Get an API Key

Visit Webacy’s API Documentation and the developer portal to get an API key. This will provide you with access to Webacy’s full suite of tools, including address scoring and risk analysis endpoints.

Step 2: Retrieve Address Risk Score

Call the API with whatever address you’re trying to assess.

The API will return a risk score and detailed metadata about the address, including:

• Financial activity anomalies
• Behavioral flags, such as connections to blacklisted addresses
• Risk level (low, medium, high)

Step 3: Analyze Results

Use the risk score to set automated actions for your platform. For example:

• Block high-risk addresses from interacting with your smart contract.
• Display warnings to users if they are about to interact with a flagged address.
• Add risky addresses to your internal blacklist for future monitoring.

Step 4: Monitor and Update in Real-Time

Webacy’s APIs also provide real-time monitoring of flagged addresses. Use this feature to ensure your platform stays up to date with evolving blockchain risks, such as new scam patterns or address vulnerabilities. Protect your team and your end-users from very real threats and build trust within the industry.

Step 5: Build a Safer Ecosystem

By integrating Webacy’s APIs, you create a safer environment for your users and your platform. This builds trust, reduces liability, and ensures compliance with potential regulatory guidelines.

Conclusion

While transaction simulation helps developers test the outcomes of blockchain interactions, Webacy offers a comprehensive risk assessment tool to mitigate risks before transactions occur.

By leveraging Webacy’s APIs, platforms can safeguard their ecosystems and foster a safer Web3 experience for all users.

Ready to protect your platform? Visit Webacy’s API Documentation to get started today.