CipherTrace, a firm for analyzing blockchain statistics, has made an announcement saying that it is going to issue a tracing toolset to be used with Monero (a privacy coin). Nonetheless, the community of Monero coin is still unconvinced about the toolset’s effectiveness. The Monero toolset of the firm has been reported to make the customers capable of tracing the funds reaching to the sources from where they were transferred. Some visualization tools are also included in the set for the same purpose.
Tracing Tools: a new advancement for preventing illegal actions
Dave Jevans, the CEO of CipherTrace, stated that privacy coins’ far-reaching feasibility is boosted up by the tracing toolkit. In this way, he added, the crypto exchanges would be allowed to tackle the problems such as AML (anti-money laundering). The toolset would charge $16,000 for each user annually, and the priority would be the government agencies as well as the institutions, as mentioned by the company. The firm has already submitted a request for two patents in the United States to allow the trade of the toolset.
Department of Homeland Security (DHS) to fund Monero Toolset
The press release reported today that the tools are constructed for research purposes and financed by DHS (the department of homeland security). Initially, CipherTrace declared in August 2020 that the tools would be only developed for DHS. Many of the Monero researchers, at that time, severely criticized the firm for providing an inadequate tracing method. The reason behind the ineffectiveness of the tools may be credited to the additional elements included in the blockchain of Monero, which include stealth addresses and other features, making the process of tracing impossible or at least difficult apart from the case of other blockchains which do not run these utilities.
In today’s declaration of CipherTrace, no specific details were given about the proper procedure with which the company’s product would work. Even now, the majority of the criticism exists. Recently, the toolset has been dismissed by Monero Outreach by categorizing it as vaporware which just made promises for future advancements. At this time, when the tool has been released by CipheerTrace, the criticism launched against it cannot be considered as valid, and the performance of the tool will be described after making it functional in the particular activities.