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Chainalysis can now track your Zcash and Dash privacy coins.

June 9, 2020

On June 8, Chainalysis announced that it would include the Zcash (ZEC) and Dash (DASH) privacy coins to make it easier for the authorities to track them.

To label Dash as a privacy coin means to give it a misnomer

The company claims that it can track most Zcash and Dash transactions because a large proportion of its users do not use features that improve data protection.When it comes to dash, Chainalysis even goes so far as to say that The term “data protection currency” is inappropriate and comes to the conclusion:

“In fact, standalone wallet software offers more advanced forms of CoinJoin that are used with major non-privacy cryptocurrencies, such as Bitcoin, Bitcoin Cash, and Litecoin.”

Dash is happy with the support from Chainalysis

In a statement to Cointelegraph, Ryan Taylor, CEO of Dash Core Group, said:

“Dash offers users the ability to extend data protection transactions because user security is important for the widespread adoption of cryptocurrencies. For end users who appreciate this functionality, Chainalysis is also a leading provider of advanced AML and blockchain analytics required by money service providers who need to reconcile data protection requirements with compliance requirements to ultimately promote the secure use of cryptocurrencies while ensuring access to them. I am delighted that Chainalysis has implemented Dash on its platform. “

Chainalysis can now track your Zcash and Dash privacy coins.Chainalysis can now track your Zcash and Dash privacy coins.

This satisfaction of the CEO of an organization that sells data protection to its users is somewhat puzzling. It is understandable that better compliance can accelerate the introduction of a cryptocurrency. However, this provision can alienate many users.

Data protection coins face an unpleasant dilemma, which would be put simply: meet or die of government suffocation, for example, Recently, several exchanges have removed Monero from their offeringsIt is understandable that governments around the world want more transparency in cryptocurrencies that can be used for illegal purposes. Given the increasing reach of governments, some people have a greater need for privacy enhancement tools.

At least Dash doesn’t look like any of these tools now. Similarly, Zcash uses zk-SNARKs. According to Chainalysis, only 0.9% of their transactions should theoretically be fully protected.

“Although the deviation in Zcash is greater due to encryption with zk-SNARKs, Chainalysis can provide the transaction value and at least one address for more than 99% of the ZEC transactions.”

Zcash refused Cointelegraph’s request for comment.

Carnegie Mellon University researchers recently concluded that 99.9% of the Zcash and 30% of the Monero (XMR) transactions were traceable .