Chainalysis: Dash, Zcash can be tracked
If you follow the crypto industry, then you understand that the title of the article includes some of the most anonymous cryptocurrencies of the modern market. Dash and Zcash are not altcoins that completely rethink the concept of privacy. The coins are based on fundamentally new algorithms that guarantee maximum confidentiality. Thus, these digital assets can be confidently called the leaders of the privacy market. However, now the transfers of even such well-known anonymous coins can be tracked. Thanks to the new Chinese service, Chainalysis, each user of these assets will be able to track the transfer. Next, we will tell you what you need for such advanced work with transactions.
Who is behind translation tracking?
A Chinese market research firm, Chainalysis is refining popular coins. Now a company project called Reactor supports Dash and Zcash. Recall that Reactor is a popular application by third-party developers to suppress crime on the Blockchain. Indeed, modern coins are closely associated with financial frauds that affect ordinary users. But thanks to Reactor, each wallet gets a certain reputation scheme, which allows you to immediately determine who you work with – with an honest coin owner or a criminal. The application supports a variety of Blockchains. Including the largest coins. And now Dash and Zcash have joined this list.
Reactor developers emphasized the importance of these coins for the market, noting that the daily trading volume of these assets is $ 1.5 billion. Despite the built-in mechanisms that struggle with translation tracking, Reactor is stable. Note that in Dash there are mechanisms installed that sort out the addresses of senders and recipients in such a way that it is impossible to track the participants of transfers. Zcash, in turn, completely hides the activity of a particular wallet. This is one of the strongest tools in the crypto industry that protects coin users. However, cryptocurrencies will be able to track.
How exactly does Chainalysis work?
After reading the previous section, you are probably surprised. In fact, how can you create a system with a reputation level if the activity of users of anonymous coins is completely hidden from outside interference? It should be understood that Chainalysis does not threaten the confidentiality of coins. Privacy is still top notch. It’s just that now every translation receives a certain level of trust. Data about users is not disclosed, a specific opinion is drawn up about the owner of a particular account. This is a third-party experience, Chainalysis does not seek to worsen cryptocurrencies. However, with their methodology, the crime rate will significantly decrease. Of course, you can also transfer funds to anyone. But the system will emphasize the user as unreliable. And you will draw the appropriate conclusions.
And such noble intentions. However, received a mixed assessment among the masses. Some experts emphasized that the company’s activity violates the civil rights of many countries and directly threatens the very essence of freedom of speech. However, the facts suggest otherwise. The translation tracking system does not affect privacy in any way. But it makes work safer. Thus, if you also want to be sure that your Dash translation partner is an honest person, you can pay attention to the Chainalysis application.
Follow all the news of the crypto industry with us. We publish only high-quality and interesting material. Thank you for the attention. Good luck!