Researchers from Carnegie Mellon University have released a study into the privacy features of Monero and Zcash - arguably the two most-popular crypto assets purporting to offer users anonymity.
Transversely, the report concludes that the lack of utilization of Zcash's privacy capabilities on the part of more than 99% of users undermines the privacy of the overall network despite ZEC offering "Strong cryptographic features."
The report describes Zcash as a Bitcoin fork that seeks "To completely break the link between the sender and the receiver."
The researchers assert that "Zcash is not widely used" currently, citing a May 2020 survey of darknet markets indicating that "It [, Zcash,] is by far not the preferred cryptocurrency on the dark web."
Through employing zero-knowledge succinct non-interactive arguments of knowledge, or SNARKs, ZEC is able to prevent any interaction between transaction prover and verifier - creating "a barrier that further impedes efforts to link addresses together."
Zcash offers both anonymous shielded and pseudonymous transparent transactions, with the researchers finding that only 0.09% of ZEC transactions within a 30-day period made full use of the protocol's privacy features.
"[E]ven though cryptographically Zcash is very well-founded, the users behave in a way that does not take full advantage of the shielded pool, making them traceable.
"[I]t seems that the large majority of Zcash users do not yet understand Zcash's operating model," the study finds, concluding that the "Minuscule" set of ZEC users utilizing shielded transactions renders Zcash "Effectively traceable."
The report notes that an increasing number of altcoins have sought to brand themselves as privacy coins, claiming to offer completely private transactions in contrast to the pseudonymous transactions enabled by nearly all crypto assets.
The paper also examines a number of further upgrades introduced to the protocol from 2017 onwards, finding that less than one percent of transactions carried out using XMR over the last two years were traceable according to most methods of analysis employed.
Researchers Claim 99.9% of Zcash Transactions Are Traceable
gepubliceerd op May 23, 2020
by Cointele | gepubliceerd op Coinage
Vermeld in dit artikel
3 key reasons Yearn.finance fell 20% in a steep correction
Finance, the decentralized finance giant popular for its vaults, fell by 20% within nine hours.
Data shows over 100 million unique users now have Bitcoin and crypto accounts
A new report commissioned by the Cambridge Center of Alternative Finance, a research effort focused on cryptocurrencies, said over 101 unique million users opened new accounts at crypto service providers such as exchanges and wallets.
J.P. Koning: The Standard About to Revolutionize Payments
Sep 28, 2020 at 19:57 UTC.What will payments over the internet look like in 2030?A revolution in finance and payments.
Market Wrap: Bitcoin Hits $10.9K; Ether Options Signal Short-Term Volatility
Sep 28, 2020 at 20:16 UTCUpdated Sep 28, 2020 at 20:17 UTC.An early rally Monday almost pushed bitcoin over $11,000; the ether options market expects volatility in the short term.