No More Private: U.S. Authorities to Develop Techniques to Track Cryptocurrencies Like Monero and Zcash

A pre-solicitation bid article document published by the Department of Homeland Security’s Small Business Innovation Research Program (SBIR) of US, on November 30, 2018, suggests and hints those U.S. authorities might be on their way to deanonymize transactions on private cryptocurrencies. This might develop tremendous impact on privacy-centric digital currencies like Zcash (ZEC), and Monero (XMR).

Feasibly it’s now time that the users of a privacy-centric cryptocurrencies review their choices.

The U.S. Department of Homeland Security’s (DoHS) pre-solicitation document advises the government body anticipating the development of forensic analysis techniques to track dealings through private cryptocurrencies like Monero and ZCash and also urges small technology firms  and businesses to conduct R&D and mature products, processes, and techniques utilized to identify and uncover crimes involving the use of digital currencies.

Zcash is a cryptocurrency that aimed at using cryptography to deliver enhanced privacy for its users compared to the other cryptocurrencies such as Bitcoin and has a fixed total supply of 21 million units.

Dealings can be “transparent” and similar to bitcoin transactions controlled by at-addr, a type of zero-knowledge proof called zk-SNARKs where the transactions are said to be “shielded” and controlled by a z-addr. Zcash coins are either in a transparent or shielded pool that affords private transactors allowing users to prove payment for auditing purposes. Transactions are auditable but the revelation of the disclosure is under the participant’s control and has hosted virtual meetings with the law enforcement agencies around the U.S. to explain the fundamentals and have gone on the record of telling that they did not develop the currency to facilitate illegal activity.

Monero (XMR) is an open-source cryptocurrency formed in April 2014 focuses on fungibilitysecrecy, and subsidiarity that uses an obscured public record, using that anybody can broadcast or send transactions, but no outside spectator use the source, amount or destination. It also uses a Proof of Work mechanism concerning the issue of new coins and incentivizes miners to secure the network and legalize the transactions.

A pre-solicitation bid article document published by the Department of Homeland Security’s Small Business Innovation Research Program (SBIR) of US, on November 30, 2018, suggests and hints those U.S. authorities might be on their way to deanonymize transactions on private cryptocurrencies. This might develop tremendous impact on privacy-centric digital currencies like Zcash (ZEC), and Monero (XMR).

Feasibly it’s now time that the users of a privacy-centric cryptocurrencies review their choices.

The U.S. Department of Homeland Security’s (DoHS) pre-solicitation document advises the government body anticipating the development of forensic analysis techniques to track dealings through private cryptocurrencies like Monero and ZCash and also urges small technology firms  and businesses to conduct R&D and mature products, processes, and techniques utilized to identify and uncover crimes involving the use of digital currencies.

Zcash is a cryptocurrency that aimed at using cryptography to deliver enhanced privacy for its users compared to the other cryptocurrencies such as Bitcoin and has a fixed total supply of 21 million units.

Dealings can be “transparent” and similar to bitcoin transactions controlled by at-addr, a type of zero-knowledge proof called zk-SNARKs where the transactions are said to be “shielded” and controlled by a z-addr. Zcash coins are either in a transparent or shielded pool that affords private transactors allowing users to prove payment for auditing purposes. Transactions are auditable but the revelation of the disclosure is under the participant’s control and has hosted virtual meetings with the law enforcement agencies around the U.S. to explain the fundamentals and have gone on the record of telling that they did not develop the currency to facilitate illegal activity.

Monero (XMR) is an open-source cryptocurrency formed in April 2014 focuses on fungibilitysecrecy, and subsidiarity that uses an obscured public record, using that anybody can broadcast or send transactions, but no outside spectator use the source, amount or destination. It also uses a Proof of Work mechanism concerning the issue of new coins and incentivizes miners to secure the network and legalize the transactions.

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