Recently, 18 people were arrested in Japan in a case that has made headlines around the world.
Police were tracking #Monero transactions to catch people involved in money laundering that was taking place as far back as 2021. This case shows that even highly secure cryptocurrencies like Monero are not immune to prosecution. However, it is still unclear exactly how the identities of those involved were discovered.
Monero has become known for its data protection features. Unlike #Bitcoin and Ethereum, which can track transactions in a public ledger, Monero hides transaction details and wallet balance. Data protection methods such as ring signatures, hidden addresses, and secret transactions make it much harder to track cash flows. These features make Monero popular with those who value their privacy.
As for the privacy that the system provides, it is important to consider what information is disclosed when it is used. No existing #blockchain system can hide the fact that a transaction has taken place. Therefore, information such as relative activity can be obtained fairly accurately on all blockchains. In general, each blockchain records the address, the amount, the corresponding inputs and outputs, and the data contained in the transaction.
the methods used by Monero, such as ring signature, hidden addresses, and secret transactions, contrast with zero-knowledge methods: while Monero hides sensitive data by encrypting it and mixing it with other data, zero-knowledge methods such as Zcash reveal sensitive data through a verification process without revealing sensitive data, using mathematically very complex procedures. A significant drawback here is the need for a "trusted configuration" procedure, which requires that no one knows the parameters being used.
must be transmitted. must be transmitted.
In any case, Chainalysis claims to have found a way to de-anonymize Monero transactions.
the smaller the blockchain, the easier it is to manage dedicated nodes.
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