The privacy features of Zcash (ZEC), a well-known cryptocurrency recognized for secure and anonymous transactions, have recently been challenged by a new blockchain monitoring platform, Arkham. Arkham has introduced an on-chain monitoring system capable of identifying over half of Zcash’s shielded and transparent transactions, linking them to known individuals and entities. According to Arkham, 53% of Zcash transactions have been tagged, with approximately $420 billion worth of transactions attributed to specific accounts. Furthermore, 48% of all inputs and outputs and 37% of the total Zcash balance, roughly $2.5 billion, are connected to identifiable accounts. This data suggests that Zcash’s claims of privacy and anonymity are now under scrutiny, potentially weakening its protections. Zcash’s reputation for privacy was previously bolstered by U.S. authorities seizing 127,000 bitcoins from Crown Prince Group’s Chen Zhi and arresting Qian Zhi Min in a $60,000 bitcoin money laundering case, events that increased Zcash’s value and prominence as a privacy-focused cryptocurrency. However, Arkham’s new analytical tool raises questions about the cryptocurrency’s confidentiality. Although Zcash’s blockchain technology was designed for confidential transactions to safeguard users’ financial information, the transparent nature of blockchain combined with advanced analytics platforms like Arkham now reduces anonymity. Consequently, Zcash users will need to exercise greater caution regarding their financial security and privacy in the future.
Source: binance
