Alapt

Cryptocurrency news

Chainalysis will start tracking public transactions in the Dash and Dash blockchains

Chainalysis will start tracking public transactions in the Dash and Dash blockchains

The Chainalysis KIT and Reactor tools allow you to track most of the open transactions with anonymous cryptocurrencies Dash and Zcash.

As the Chainalysis guide reported in its blog, users of these tools will be able to check DASH and ZEC “for cleanliness”. The daily trading volume of these cryptocurrencies together amounts to about $ 1.5 billion.

Dash and Dash are considered to have an increased level of privacy, but anonymity features are not used in most transactions. DASH has a PrivateSend function, which is a built-in mixer that obfuscates the transaction trace to hide the original address. Cash uses zk-SNARKS technology, which encrypts the sender’s and recipient’s data and their balance. According to Chain analysis, this technology provides higher anonymity compared to mixers. Despite the confidential nature of DASH and ZIC, users can use the Analysis KIT and Reactor tools to find out whether these cryptocurrencies were used for money laundering, terrorist financing, or other illegal activities.

Chainalysis explained that even in some transactions with the activated PrivateSend option, you can link the inputs and outputs, as well as determine the address of the wallet from which the coins were originally sent. PrivateSend significantly increases user privacy, but Chainalysis does not preclude the successful conduct of the research. According to experts, PrivateSend is used only in 0.7% of transactions with Dash, and only about 9% of transactions with this cryptocurrency are mixed. As for Zcash, 14% of transactions are made using encrypted pools, while only 0.9% of transactions with ZEC are fully encrypted.

The above means that most transactions with both coins are made without using all the features of the protocols that ensure confidentiality. Accordingly, in such cases, Chainalysis services will allow you to find out the transaction amount, and often track the address of the sender or recipient.

In April, Chainalysis reported that cryptocurrencies are increasingly being used to access prohibited content. However, cryptocurrency enthusiast Andreas Antonopoulos compared Chainalysis to “weapons manufacturers and businesses that produce cells for concentration camps.” In his opinion, such analytical companies provide information that violates the civil rights of millions of people.