Most cryptocurrency users will be all too aware of what blockchain analysis means.
Several firms around the world specialize in tracking transactions on public blockchains to ensure there is no nefarious activity conducted on them. Chainalysis is one of the market leaders in this area. The company recently inked a new set of deals with the US government to continue providing this service. Any non-anonymous currency will be tracked and scrutinized pretty closely for years to come, by the look of things.
US Government Appreciates Chainalysis
Not too long ago, we reported that the IRS was working together with Chainalysis to ensure that Bitcoin users weren’t using cryptocurrency for money laundering or tax evasion purposes. The company’s blockchain analysis services link real-world identities to particular Bitcoin transactions. Everyone should know by now that Bitcoin possesses no privacy or anonymity traits, nor was it ever intended to.
That fact makes it a lot easier for firms such as Chainalysis to perform blockchain analysis services. Knowing that a company like this one works closely with the US government is both good and bad. It helps validate Bitcoin as a tool not suited for criminal activity, but it also means people may face a lot of unnecessary scrutiny in the process. There is a very fine line between privacy and preventing criminal activity, unfortunately.