2021-03-26 Yahoo! - Chainalysis Raises $100M, Demand for Blockchain Surveillance

[Febo]

Chainalysis Raises $100M, Underscoring Surging Demand for Blockchain Surveillance

Chainalysis,  a blockchain tracking firm whose client base includes government investigators, crypto exchanges and even financial institutions, raised $100 million in a round that underscores surging demand for cryptocurrency compliance infrastructure.

Chainalysis is among the largest U.S. cryptocurrency investigation firms building software to untangle messy blockchain transaction histories. Crypto transfer records are publicly available but difficult for laypersons to decipher without context, such as flagged wallet addresses and blacklisted coins.

https://sg.finance.yahoo.com/news/chainalysis-raises-100m-underscoring-surging-133002566.html

Blockchain analysis is becoming one of the biggest crypto industries. Numerous companies are fighting for talent and offering their services to companies and institutions. Wide use of transparent ledger cryptocurrencies make this  surveillance possible.  

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[Theb]

Chainalysis' main client are government departments as they offer tracking services that can potentially rule out the crime happening with the use of cryptocurrencies, I don't see any private companies availing their services as there is no need for them to do so. Regarding if Chainalysis have any close competitors with what they are doing I don't recall any name competing against them so they are literally the only ones who stand out in this Blockchain tracking industry, however I think for a main competitor to rival Chainalysis in this industry I see the biggest opportunity for them is to discover a way on how to track Monero related transactions which I think the US government particularly the IRS have provided a reward for people on cracking Monero's system. If they simply did this first then I think it will pave them the way to overtake Chainalysis.

[Febo]

I don't see any private companies availing their services as there is no need for them to do so.

You are very wrong here. Information are the oil of 21st century. Payment information are the holly grail of information. Companies gather and trade information about customers and competition. They do that on social media the do that on websites, they do that on payment services. They same they do and will do on transparent ledger cryptocurrencies.

[acquafredda]

I don't see any private companies availing their services as there is no need for them to do so.

You are very wrong here. Information are the oil of 21st century. Payment information are the holly grail of information. Companies gather and trade information about customers and competition. They do that on social media the do that on websites, they do that on payment services. They same they do and will do on transparent ledger cryptocurrencies.

Loads of private companies are tapping on these blockchain analytics firms: basically every exchange and/or related crypto service has signed a contract with Chainalysis, Elliptic, Cyphertrace etc. They cannot operate now without these services and, therefore, Theb, you are a bit wrong here.

[Theb]

I don't see any private companies availing their services as there is no need for them to do so.

You are very wrong here. Information are the oil of 21st century. Payment information are the holly grail of information. Companies gather and trade information about customers and competition. They do that on social media the do that on websites, they do that on payment services. They same they do and will do on transparent ledger cryptocurrencies.

If companies are more interested in payment information I believe that they won't be focusing on Blockchain related transactions first because from what I have seen there are far more focused on gathering up information from credit/debit card transactions as well as use e-commerce data for what products are people actually buying which for a company is a more direct way of answering what people are interested in, I know for some data companies are actually asking for receipts of users to gather up what they are buying in groceries and department stores. Blockchain analysis right now is something more focused by government entities rather than private companies.

[malevolent]

Blockchain analysis right now is something more focused by government entities rather than private companies.

You're wrong. Almost from the start custodian businesses (e.g. exchanges) were one of the major buyers of these services. Chainalysis gets talked about a lot because that's part of their marketing strategy and they were one of the first to market (not sure if they were the first or not).

[bbc.reporter]

Chainalysis' main client are government departments as they offer tracking services that can potentially rule out the crime happening with the use of cryptocurrencies, I don't see any private companies availing their services as there is no need for them to do so. Regarding if Chainalysis have any close competitors with what they are doing I don't recall any name competing against them so they are literally the only ones who stand out in this Blockchain tracking industry, however I think for a main competitor to rival Chainalysis in this industry I see the biggest opportunity for them is to discover a way on how to track Monero related transactions which I think the US government particularly the IRS have provided a reward for people on cracking Monero's system. If they simply did this first then I think it will pave them the way to overtake Chainalysis.

I reckon there were claims that Monero’s anonymity and privacy were cracked, however, none has shown proof of this. I reckon the American government would be more effective to use the reward money to pay internet trolls to spread fear, uncertainty, doubt to discourage the people from using Monero hehehehe.

[slaman29]

I know it's a lot of money but I thought they'd be able to raise a lot more since the CIA IRS and FBI have all made use of their services at some point right? Ask for more surveillance, but meanwhile banks are still allowed to do all their dirty businesses and get away with small fines while blockchain criminals get jail time. Very fair.

[Kakmakr]

Hey, with all the "large" companies coming into the scene .... it is just a natural evolution for Blockchain surveillance companies to bloom now. We will see centralized services like PayPal and Credit card companies making more and more use of these types of services.

Governments will regulate Crypto currencies and they will target the Crypto currency use that will happen on the outside of the regulated platforms. (Control & taxes will be their main goal)