U.S. DHS Seeking "Forensic Analytics" for Tracing Zcash and Monero

The U.S. Department of Homeland Security has put out a pre-solicitation request for tracing private transactions and performing blockchain analytics on cryptocurrencies, such as Zcash and Monero.

On Nov. 30th, the U.S. Department of Homeland Security issued a pre-solicitation notice for "Blockchain Applications for Homeland Security Forensic Analytics." The application is requesting blockchain forensic analytics which can be used for tracing transactions on newer, privacy-oriented coins "Such as Zcash and Monero."

"While these features are desirable, there is similarly a compelling interest in tracing and understanding transactions and actions on the blockchain of an illegal nature."

"This proposal calls for solutions that enable law enforcement investigations to perform forensic analysis on blockchain transactions."

A pre-solicitation notice is the first-step towards providing government research grants.

The proposals have interesting ramifications for privacy-oriented coins, such as Zcash and Monero.

As the public becomes aware of these privacy concerns, it is possible that more users will migrate to platforms such as Zcash and Monero.

At that point, it will become a race between the developer communities within Zcash, Monero, and other privacy-oriented coins and enforcement agencies such as DHS. These privacy coins will need to outdo the tracing efforts and methods of government agencies if they intend to remain secure.

Those who have made themselves public, such as Zcash Founder and CEO Zooko Wilcox, could undergo government sanctions if they do not provide the government with ways to scrutinize the transactions on these platforms.

One group is looking to liberate themselves from the control of centralized enforcement agencies and governments.