Although the claims that the US company Ciphertrace can track the exchange in monero (XMR), the most famous defense coin, have been met with doubt, various experts have warned about the “insensitivity of customers to security”.
Ciphertrace recently reported what it calls the world’s first XMR with features designed to allow law enforcement cooperatives, government, and virtual resources experts (VASP) to track exchange using a coin, which was planned for security purposes and is intended to ensure the identity of its clients.
The firm believes that for the Monero “it is difficult to follow”, which explains why the expected 45% of the Darknet markets use the Monero, which makes it the second most popular digital money solution for violators of the law, giving way only to Bitcoin (BTC).
Ciphertrace was sent by the US Department of Homeland Security to create the following tools. The current estimate of the agreement is $2.4 million, with an expected estimate of up to $3.6 million.
The agreement resulted in the improvement of measurable machines for the requirements of the law and government organizations, which should monitor and display the exchange flows of XMR for criminal investigations.
“This makes it possible to follow the accepted monetary forms or forms of money used in illegal exchanges. This additionally guarantees cryptographic money transactions, over-the-counter exchange workplaces, speculative assets and service providers that they do not recognize the receipt of money from illegal sources and research obtained by the Monero from possible illegal sources and take appropriate actions to remain in agreement”, – stated in the communication.
Despite these cases, Cryptoverse is wary of the viability of the newest Ciphertrace devices, which is indicative of Russia’s supposed success in creating a model of the stage of partial digitization.
As the provider of information about the cryptocurrency market Coin Metrics indicates, “it is difficult to identify the sender of the exchange Monero”. Moreover, in 2017, Monero added Bulletproofs, a much later advance in cryptography that, according to Coin Metrics, hides (closes) the sums received.
“They do not have visible addresses, therefore the results can be obtained from the addresses / pods shared by [with] transactions, and after some time mix with every [transaction] made by them or other persons”, – added one Twitter client.
Another client on Reddit was also unconvinced, stating that although research there is ongoing, I would be extremely surprised if this organization found some new method of research that is currently unknown from long periods of open research. A group of people Monero and other scientists and industry specialists. I would be far more impressed if they had a strategy that was fully suited to current exchanges or that did not require critical and explicit external information to reach authoritative definitions, such as those of transactions. They are probably trying to draw known factual conclusions from network structures or external information, but again this is unrealistic to know because they are not saying.
However, Coin Metrics claims that “the lack of customer care for protection is probably the biggest shortcoming of the current mysterious exchange platforms”.
“As the cryptographic forms of money continue to be used by larger, open parties, their unique protection principle of protection must be brought to the ultimate goal to withstand them. Neglecting this can cause the first thought that mysterious structures of exchange will be continuously blurred and replaced by different sources of what digital currencies are useful for”, – said in today’s bulletin of the company.
Established in 2015, Ciphertrace claims to provide blockchain research and cryptocurrency management services to approximately 150 customers, including banks, controllers, VASP, and others.
At pixel time (13:21 UTC), XMR, which ranks eighteen in market capitalization, is traded at $96.5 and grew by 1.6% per day and 7.6% per seven days. The cost is increased by 13% per month and 34% per year.