The tracking and tracing of cryptocurrencies are one of the major concerns for regulators and statutory organizations. As decentralization and disintermediation are the fundamental principles on which digital coins work, it is difficult to trace the executed crypto transactions.
However, in an interesting development, CipherTrace announced that it invented a tracing tool for the Monero cryptocurrency to help regulators, agencies, and institutions keep track of the digital coins and their transactions. CipherTrace is a leading name in the segment of cryptocurrency compliance. It has been at the forefront of bringing innovations for enhancing safety and security aspects related to transactions of digital coins.
The research conducted by CipherTrace has got partial funding support from the US government. With the launch of this tracing tool, the organization has established itself as a leading player in offering a solution to trace Monero. The distinctive ability of this tool is its capability to follow the sequence through which the funds flow back from the account of the interest to its original source. The tool is can also produce a pictorial representation, which equips financial institutions and investigation agencies to trace the origin of suspicious activities in a more efficient manner. The company has already applied for two patents in the US for this innovative tracing technology.
Not only does this particular development will strengthen the hands of investigators but also enhance the long-term viability of digital coins among prospective users in the long term. It will prove helpful in bringing an enhanced sense of security and safety for both investors and users besides assuaging concerns that many have related to the untraceable nature of crypto assets. It will be interesting to witness how much rise in the popularity Monero will witness owing to the invention of this enhanced tracing capability tool and whether, in the future, we will witness more such tools for other coins too.