Elliptic, a blockchain analysis company, has added two of the privacy coins, such as Zen and Zcash, to its monitoring platform. It is big news in the cryptocurrency world. The addition of these two coins gives a clear cut insight to both the exchanges and institutional investors to take proper due diligence measures after completion of the transaction trails. The main thing about using Crypto is the privacy factor. The firms are looking to carry out their transactions high safe and in private. The transactions that are happening on the blockchain technology are entirely safe, secure, and meet people’s privacy.
The funds can be viewed to transfer from shielded addresses, and this gives rise to some compliance issues. Elliptic would not remove any feature of these coins that would breach the privacy. They want to keep the features that enhance privacy. These people offer transaction screening tools for exchanges and maintain everything private. Privacy and transparency both must be balanced. This balance can be attained through blockchain, especially bitcoins.
The company is maintaining the anonymity of the people who are carrying out the transactions. The personally identifiable information would not be revealed publicly on the blockchain. It offers high transparency that makes the transactions highly secure and safe.
There are many intelligence techniques used by the privacy coins to keep transaction trails at bay on the blockchain. There is an opt-in privacy measure available in Zcash and ZEN, which the users can disable if they want to show their transactions on the blockchain technology. If they do not want the transaction to be visible, they can enable this option.
If the cryptocurrency exchanges would like to know where the transaction was carried out, Elliptic is offering a service for privacy coins. This shows when the transaction has happened from the shielded address.
Every business which is following the regulations would like to know from where the transaction is happening. They also want to make sure that the funds are coming from a shielded address similar to that of bitcoin. It makes sure that it is coming from the mixer. If the funds come from other addresses, it is not that those coins are illegitimate or corrupt. The firms want to know where the funds are coming to take the necessary steps.
When you know that the funds are coming from shielded Zcash and horizon address, they help you adopt more of those coins. There are a few exchanges that are delisting the privacy coins to maintain good relationships with the banks.
Today, Zcash is found to be less risky than the bitcoin as it has the same visibility. The Zcash can never be used to carry out illegal trading activities. The irony is that a few illegitimate marketplaces are accepting Zcash as a mode of payment when you buy some product.
Kennedy, who is working with Chain analysis, clearly stated that Zcash would support analytics products. There are around 14% of Zcash transactions happening, and they would have shielded pools. However, only 6% of transactions that would interact with the shielded pool are actually shielded where the sender, receiver, and the amount that is sent from the sender to the receiver are encrypted. Many leading crypto firms are using Elliptic transaction and wallet monitoring tools for Zcash and ZEN.
When the blockchain monitoring support is provided to Zcash and ZEN, which are the private coins, it becomes easier for the financial institutions that are regulated in a safe and compliant way. Now, companies can use privacy coins for their business growth. Many cryptocurrency exchange are adding these privacy coins to their portfolio to grab the attention of new customers.
Elliptic’s move of using the privacy coins is taken to keep illicit activities at bay besides meeting their anti-money laundering and compliance obligations.