How Can ‘Privacy Coins’ Be Tracked?

David Kemp

The majority of users trust Chainalysis and claim that this firm is capable of telling more about ‘privacy coins’ that we know of as Dash and Zcash. The company regards the mentioned coins as ‘bluff’. They add support to the mentioned brands and believe that it is not appropriate to call this sort of coins ‘privacy’.

On Monday, the company reported that they are ready to study and analyze the issues. Their mission is to simplify the tracking process and assist law enforcement.

The Right Definition for Dash

Analysts say that a ‘privacy coin’ is merely a wrong definition and it does not describe Dash the right way. The official representatives announce that their team can trace the majority of transactions users perform. They can do it simply because some users ignore special features that allow them to enhance privacy. 

More than that, according to the company, ‘privacy’ is not the right definition for the coin. They mention that there’re software developers that offer more advanced alternatives that people use with leading cryptocurrencies like Litecoin or Bitcoin and they are not called such terms. Dash, in turn, seems to be satisfied with the support that Chainalysis provides. Ryan Taylor stated that Dash is ready to offer people to enhance their privacy while performing transactions. They admit that users need to feel safe and secure. The team takes pride in its approach they apply for AML. This applies to blockchain analytics, too. The firm has all it takes to guarantee the safe use of crypto. As a result, Chainalysis is about to implement the coin into their platform.

The CEO feels satisfied with the company’s perspectives and understands that their efforts can trigger greater adoption of crypto. On the other hand, this level of perplexity can put off some customers. Privacy coins keep facing various dilemmas and suffer from the suffocation coming from the government. A few exchanged had to delist Monero due to the lack of transparency – the authorities cannot allow any illicit activities. What the crypto market cannot deny is that some users desire to have tools to enhance privacy.

Instruments That Can Enhance Privacy

Dash is not one of such instruments for now. Luckily, Zcash applies cryptography that provides maximum privacy and yet less than one percent of its operations are well-protected. The guarantee is strong and it’s derived from the fact that the developers encrypt activities in Zcash and protect users. Everything is performed without disclosing inputs.

There’s no leaking information and the founders are certain that their approach will soon be widely used in many other areas. Senders as well as receivers of the encrypteded transactions are enabled to prove and validate their encrypted operations. Even though the most advanced encryption technology that Zcash employs can provide protection, Chainalysis can offer transaction value. They can also provide at least one source for over ninety-nine percent of ZEC activity.

The crypto market researches keep studying the industry. They are trying to find out more details about the coins that users trust in. Their research results are not always optimistic. Scientists conclude that almost one hundred percent of Zcash transactions are traceable. They also state that the system can keep track of approximately thirty percent of Monero transactions.