KYT, or Know Your Transaction, refers to the practice of monitoring and analyzing financial transactions to understand their nature and origins. It focuses on the movement of funds and aims to identify patterns or behaviors that may indicate illicit activities, such as money laundering or fraud.Unlike KYC (Know Your Customer), which deals with the identification and verification of users, KYT emphasizes the transactions themselves. This involves tracing the flow of funds through the blockchain to identify where they came from and where they are going.Companies that provide KYT solutions utilize various tools to assess transaction risks. These tools analyze transaction data, looking for red flags or suspicious activities. By doing so, businesses can ensure compliance with regulations and enhance security measures.KYT has grown in importance as more regulations are enacted, aiming to promote transparency and prevent illegal activities in financial systems. It plays a vital role in maintaining the integrity of transactions and fostering trust within the ecosystem.