Have you ever thought that every transfer on the blockchain might be monitored?

For Web3 newcomers, the term KYT might not even be familiar. But in fact, it has been around you for a long time.

Almost every exchange and wallet app secretly integrates KYT systems behind the scenes to conduct compliance checks on your transactions.

**The full name of KYT is Know Your Transaction, which literally translates to "Understand Your Transaction."** It sounds a bit scary, but there is a reason for the existence of this mechanism.

The on-chain world may seem free, but compliance reviews of transactions are becoming increasingly strict. Why is this happening? As regulatory attitudes become clearer, exchanges and wallet service providers must establish risk control systems to prevent funds from being used for illegal purposes. At this point, KYT has become their essential tool — by analyzing multiple dimensions such as transaction addresses, transaction history, and transaction amounts, it assesses whether a transaction poses a risk.

In simple terms, KYT is the "transaction reviewer" in the crypto world.