A new pre-solicitation document revealed by the DHS small Business Innovation analysis Program discusses the utilization of digital currencies like Bitcoin [BTC] for transactions. whereas the document notes that there are both industrial and govt uses for crypto’s, the subject specifically focuses on finding some way to conduct analysis on privacy-focused coins that if they’re can possibly be used for the criminal activity.
In the document, DHS outlined that platforms like Zcash [ZCH] and Monero [XMR] emphasize privacy and obscurity as key options, creating it troublesome to work out from where a dealing originates or what quantity is shipped.
“While these options are fascinating, there’s equally a compelling interest in tracing and understanding transactions and actions on the blockchain of an illicit nature,” it further adds from the document as:
“This proposal entails solutions that modify enforcement investigations to perform forensic analysis on blockchain transactions. This analysis will be approached in any variety of the way and should contemplate completely different data situation use cases looking on whether or not further data from off-chain sources are offered.”
While the document cites Zcash [ZCH] and Monero [XMR] as two samples of privacy-focused cryptocurrencies, it additionally notes that new platforms will be developed with similar options. As such, any projected answer would have to be compelled to either be applicable more usually or “provide operating approaches to treating newer blockchain implementations.”
The file outlines 3 phases such a proposal would follow.
The document notes that it’s neither a solicitation nor a request of invitation for Proposals, that means the agency isn’t searching for specific solutions at now. Rather, interested parties could contact topic authors till 18th Dec. to either offer a comment or raise technical queries. The actual solicitation is anticipated to be revealed around 19th Dec.
The complete document can be referred here.