Open your mind: Will “Decipher” Monero reveal a treasure or a gold of fools?

Recently, The Internal Revenue Service (IRS) of the United States caused quite a stir in the crypto community when it put a price on the head of Monero (XMR), a cryptoasset focused on anonymity, offering up to $ 625,000 to anyone who could effectively track the supposedly untraceable asset. As the crypto and blockchain industry values ​​anonymity and privacy, some questions arise about the outcome of this effort, not to mention its plausibility.

“At the current stage of crypto science, the Monero protocol is nearly impossible to break with the necessary certainty,” dijo a Cointelegraph Pawel Kuskowski, CEO of Coinfirm, a blockchain analytics company. “However, it does not mean that tracking of Monero assets is impossible in an effective way,” he said, clarifying:

“Some initiatives may be beneficial for the investigation of cryptocurrency crimes for the authorities, such as: running a large network of their own Monero nodes, analyzing any data seized by the closure of service providers that do not comply with Monero and using software spyware and wallets, the latter of which is particularly useful for investigations. “

Monero is one of the best-known anonymity-focused assets in the entire crypto industry. Cryptocurrencies like Bitcoin (BTC) they publish all transactions in a public ledger visible to anyone online. Even if BTC transaction addresses remain pseudonymous, Various tools and efforts can sometimes link transactions and addresses to the identities of the people behind them. Since its inception in 2014, Monero has the ability to hide the value of transactions and sender addresses. The asset’s blockchain also hides transactions and their sums from outside parties.

A company claims it can track XMR

The blockchain analysis company, CipherTrace, was presented on August 31 offering the supposed technology to be able to track XMR, according to the first of its kind. “We recently added Monero tracking capabilities to our research suite,” He said Dave Jevans, CipherTrace CEO, to Cointelegraph in a follow-up conversation, adding:

“Our tools do not reveal the identities of users who send or receive Monero transactions. It is up to law enforcement to find that information from address maps, wallets, payment IDs, etc.”

The IRS enters the game

The motivation to “decode” XMR gained heightened interest on September 11, however, when the US tax authority, the IRS, published its search for anyone capable of cracking the stealth technology of Monero transactions. , offering up to USD 625,000 as a reward for such information. In a industry where privacy is valuedHelping a government agency in such an effort seems antithetical to space, in a way.

“The IRS offers that sum of money for research and development, which is not as controversial or surprising as many in the media make it seem,” Jevans explained, adding that the government body is targeting the participation of a number of entities for the effort, budgeting as little as $ 1 million for the effort. Therefore, the IRS posted an upfront payment of $ 500,000, and another $ 125,000 paid based on performance eight months later. Jevans declined to comment on whether CipherTrace plans to work with the IRS.

Kuskowski described the IRS reward as predictable, given the time the reward was announced, which was approximately five days after CipherTrace released its XMR tracking tool. Kuskowski, however, did not mention the name of CipherTrace, but referred to the company, noting at the time when the events occurred, as well as the likely focus of the company, which he described as: “Totally useless for investigations because the authorities cannot show clear evidence. In crypto something is or is not, there is no improbable.”

The IRS revealed its two champions capable of “cracking Monero” on September 30. Surprisingly, CipherTrace was not one of them, Although the race to beat crypto privacy also involved the government agency’s desire to defeat privacy held within layer two Blockchain solutions, like the Bitcoin Lightning Network. Chainalysis and Integra FEC were the winners, outperforming 22 other companies.

Questions About Monero’s Tracking Efforts

CipherTrace claims it has the power to track Monero, and the IRS apparently saw something promising in Chainalysis and Integra FEC, but the effectiveness and depth of such tracking remains a topic of conversation. “I am highly suspicious of any claims that corporations can track Monero transactions,” a Monero Outreach representative told Cointelegraph. As an independent working group, Monero Outreach teaches the public about the privacy-focused asset.

“While it may be possible to obtain user information from network-level metadata that is not hidden with Tor or a similar privacy network layer, it may not be able to track wallets or transaction amounts. “, the representative explained. A common computer program, Tor, facilitates anonymous interactions online. The representative added:

“If this were the case, we would have learned by now from the handful of research teams who work tirelessly studying Monero and looking for these types of vulnerabilities.”

If all three companies discovered methods to track Monero, the crypto space could benefit. XMR boasts of a large number of involved developers working on advancing the code while fixing any weaknesses that come to light, according to the rep. Therefore, the asset improves after any weak point is discovered, the representative ran.

Will XMR lose its value can you figure it out?

At the time of publication of this analysis, Monero is the 16th largest cryptocurrency, based on in the data from CoinMarketCap, priced at $ 102.41 for each coin, butWhat will happen to the value of the asset if it loses its privacy capabilities? Kuskowsk opined:

“We believe that the value of XMR will be close to zero if it loses its anonymity aspect, as currently most companies that use or offer it to their clients (with the exception of some derivative products) are on the verge of being legal.”

Jevans from CipherTrace has a slightly alternate point of view. “The construction of Monero is quite different from that of Bitcoin, so it is most likely that Monero’s tracking will always be more predictive than completely deterministic; however, a breakthrough in reducing the anonymity of Monero would likely make the price to crash initially “, he said, adding that privacy-seeking asset owners could quickly seek a way out, putting large amounts of the asset on the market.

Even if your privacy is affected, Jevans hopes that the price of XMR will rebound once he sees that it can be listed on other cryptocurrency exchanges, which will make the trading volume significantly higher. “It’s also worth noting that Bitcoin has never been anonymous and has always been valued higher than Monero,” added.

Monero is already on a large number of cryptocurrency exchanges, offering a potential counterpoint to Jevan’s expectations. Also, Monero is known for its focus on privacy, which will be void if you lose your privacy. However, in contrast, Excluding Monero has also become a recent trend, decreasing the available volume. Various platforms removed the asset from their list for various reasons in The last two years, among them we find Huobi and Bithumb.

Although Chainalysis declined to comment on the IRS’s effort to crack Monero, the firm offered its perspective on the value of XMR if you lose your privacy. Maddie Kennedy, Senior Director of Communications for Chainalysis, dijo a Cointelegraph:

“Cryptocurrency users, including malicious actors, often have to choose between using a cryptocurrency like Monero for its enhanced privacy and Bitcoin for its convenience, availability, and liquidity. Bitcoin tends to win already, especially as more and more exchanges are phasing out privacy coins in light of regulations. “

It is also important to note that the nefarious characters they are not the only ones who value privacy technologies like Monero. The coin offers a way for the common person to regain their privacy in an era full of digital snooping and data selling.. Governments and those in power treat privacy in digital spending as an alien concept, when in reality, money printed by governments is the most anonymous and available option. used daily in illegal activities.

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Open your mind: Will “Decipher” Monero reveal a treasure or a gold of fools?

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