America is looking to trace cryptocurrency but can it be done?
We all know that the concern with cryptocurrency is that it is a coin that is not regulated or controlled by any authority and therefore there is no actual way that can be used in order to trace the coins that are used in any transaction. For many countries, this is a concerning factor. As a result, there are many cyberattacks that actually request that the hackers be paid out in cryptocurrency of sorts, before the sensitive information is released back to the company. This occurs by means of a ransomware that is used to infect the company or user's machine.
The decentralized nature of cryptocurrency is believed to be one of the key reasons for increased cyberattacks, and in an effort to combat this, the government of the United States of America is actually trying to devise a strategy that can be used to trace cryptocurrency transactions. Based on the article, it seems that this will allow them to trace the movement of funds to the hacker. Do you believe that such would be considered to be possible, especially since this would require major alterations to the currency blockchain network and its operation thereof?
The transparency of blockchain has made it easy for transactions to be traced . With transaction hash , one can see the wallet through which the transaction was made from and the receiving wallet as well. This has been the challenge for validating transaction on the blockchain.
The developers of privacy coins saw this challenge and it prompted them to developing the privacy coins where transaction cannot be tracked. But then government of some countries banned it because it became an avenue for scammers to carry out fraudulent activities without trace.
In conclusion , for coins validated on the blockchain which has no privacy script , they can easily be traced.